U.S. Jobless Claims falls to new pandemic low but misses expectations
(Kitco News) - The U.S. labor market continues to improve albeit at a slower pace than expected.
Thursday the U.S. Labor Department said that weekly jobless claims fell to a new pandemic low, dropping by 4,000 to 279,000. The previous week's estimate was revised up to 271,000 claims.
The latest labor market data missed market expectations as economists were looking for a print of about 257,000 claims.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – fell to 278,00 down by 7,250 claims from the previous week.
The four-week average also fell to a new pandemic low, the report said.
Continuing jobless claims rose to 2.16 million during the week ending Oct. 30, up 59,000 from the previous week’s revised level.
Markets have been keeping a close watch over labor market data as it has been a key target to determine the liftoff of U.S. interest rates. The Federal Reserve as said that it is not ready to raise interest rates until the economy is at full employment.
The central bank has also noted that the economy still has a long road ahead to reach that goal.