US initial jobless claims fall to 5-week low, signs of endurance prevail in the economy

The United States initial jobless claims fell to five-week low in the week ended August 20, showing desperate signs of endurance in the country’s labor market.

Jobless claims dropped by 1,000 to 261,000 in the week ended Aug. 20, a report from the Labor Department showed on Thursday. The median forecast in a Bloomberg survey of economists was for 265,000. Such a sign of durability can work in the process of assuring a rate hike by the Federal Reserve officials, by the end of this year.

Moreover, filings have been below 300,000 for 77 straight weeks, the longest stretch since 1970. That is typically consistent with an improving job market.

The number of people continuing to receive jobless benefits dropped by 30,000 to 2.145 million in the week ended Aug 13, below the Bloomberg survey median forecast. The unemployment rate among people eligible for benefits remained at 1.6 percent.

Meanwhile, markets will be looking forward for the employment report scheduled to be released on Sep 2. However, no estimates for the employment report are currently available.