Thursday 30 June 2016

Jobless Claims Rise In US Last week



The number of Americans filing for unemployment benefits rose last week, but remained below a level associated with a healthy labour market according reports by Reuters.
Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 268,000 for the week ended June 25, the Labour Department said on Thursday.
Claims for the prior week were revised to show 1,000 fewer applications received than previously reported. Last week's increase was in line with economists' expectations.
Claims have now been below 300,000, a threshold associated with a strong jobs market, for 69 consecutive weeks, the longest streak since 1973.
The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, was unchanged at 266,750 last week.

The low level of layoffs suggests underlying strength in the labor market even though hiring slowed sharply in May, with nonfarm payrolls increasing only 38,000, the smallest gain since September 2010.
Although economists believe job growth picked up in June, there are worries that Britain's vote last week to leave the European Union could prompt companies to delay hiring amid uncertainty over how the so-called Brexit will unfold.

The Brexit vote wiped a record $3 trillion off the value of global shares in a two-day selloff. While global equities have since recovered some of the losses, it is unclear whether the financial turmoil triggered by the referendum is over.
Stocks in Asia and Europe rose for a third consecutive day on Thursday, with U.S. equities also set to open higher. The dollar was little changed against a basket of currencies, while prices for U.S. government debt rose.
A Reuters survey of economists forecast payrolls rising 180,000 in June. The Labour Department will publish its June employment report on July 8.

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