US initial jobless claims fall to near seven-month low

The number of individuals filing for unemployment benefits in the US decreased by 6,000 from the previous week to 213,000 for the week ending November 16th, the lowest level since April, and well below market expectations of an increase to 220,000.

US initial jobless claims fall to near seven-month low

This result reinforced the view that the US labor market remains exceptionally strong, despite the Federal Reserve’s aggressive tightening in recent quarters, providing the central bank with more flexibility to slow its pace of monetary tightening if inflation remains persistently high.

Four-week moving average figures

The four-week moving average, which smooths out week-to-week volatility, dropped by 3,750 to 217,750. Additionally, the non-seasonally adjusted claim count fell by 17,750 to 213,035, with significant declines in California (-4,657) and Georgia (-2,154). However, outstanding claims rose to 1.908 million in the prior week, the highest level in three years.