The number of unemployed workers applying for jobless benefits tumbled in the most recent weekly data to the lowest level in more than eight years, signaling that employers are letting go of very few workers.
A low number of layoffs and stronger job growth do more than just put more money in workers’ pockets. These trends can also lead to greater confidence when it comes to workers’ career prospects and their families’ personal finances. Greater confidence can lead to more spending, creating a healthy economic cycle.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to an more than eight-year low of 284,000, from the previous week’s total of 303,000. Analysts had expected jobless claims to rise by 5,000 to 308,000 last week.
Gold futures fell to the lowest levels of the session on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell to the lowest level since February 2006.
The dollar rose broadly against the other major currencies on Thursday, as strong U.S. jobless claims data boosted demand for the greenback.
The upbeat data added to speculation that the Federal Reserve will hike interest rates sooner than expected.
