The number of Americans filing new claims for unemployment aid fell to near a 49-year low last week, and private payrolls rose steadily in August, pointing to sustained labor market strength that should continue to underpin economic growth, Breitbart reported.
“The 4-week moving average, considered a better gauge of the labor market because it smooths out week-to-week volatility, fell to 209,500 from 212,250. This is the lowest level for this average since December 6, 1969 when it was 204,500.
“Jobless claims have been closely watched in recent weeks for signs that trade disputes might weigh on the jobs market. To the surprise of many economists and critics of the Trump administration, jobless claims show no signs of stress from tariffs that U.S. has put in place or retaliation from foreign countries.”
Economists say given labor market tightness, employers were reluctant to lay off workers. The labor market is viewed as being near or at full employment.
Separately, the ADP National Employment Report showed private payrolls increased by 163,000 jobs last month. Data for July was revised to show private hiring rising by 217,000 jobs instead of the previously reported 219,000 positions.
The economy grew at a 4.2 percent rate in the second quarter of 2018, the fastest in four years. The Federal Reserve has hiked interest rates twice this year and is considering doing so again in response to the economy’s robust growth.
Trade disputes with China and Europe have provoked ripples in the market as companies hedge their bets on whether to count on the economy’s continued strength, as reported by National Review.