Strong labor market brings risky assets closer to the grave
Effect will be rather short-lived though
In the week to August 26, the number of new applicants for unemployment benefits in the US fell unexpectedly. Data released by the US Department of Labor revealed this remarkable trend.
The number of new applications for unemployment benefits fell by 4,000 to 228,000. Especially the revision of the previous week’s figure from 230,000 to 232,000 was noteworthy.
Taking into account the four-week moving average, which smooths weekly fluctuations, the figure reaches 237,500. This figure is up 250 from the previous week, indicating a slight upward trend.
The number of continuing claims, which reflects people who have already applied for unemployment insurance and are applying for benefits, rose to 1,725,000 for the week ending August 19. This figure represents an increase of 28,000 from the previous week, indicating a significant change in the persistence of unemployment.