Unemployment Claims Drop to New Low

A new low in unemployment benefit applications could indicate a resilient job market.

The number of people filing for first-time claims dropped by 12,000, bringing the total to 260,000, which is the lowest in a month. The amount of claims numbered 255,000 in mid-July, which is the lowest in four decades.

The Bloomberg survey forecast around 270,000 jobless claims, and the four-week average claims remained at 271,000.

The number of people who will continue to receive benefits, however, increased to 2.21 million from 2.17 million. The unemployment rate of those eligible for benefits remained at 1.6 percent.

As with other job market data and activity, these statistics will contribute to the Fed’s decision to maintain the interest rate, or raise it for the first time since 2006.

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