In the past week, 375,000 people filed for the first time for initial jobless claims, marking the third consecutive week when the figures declined. As the economy started to recover, the jobless claims have come down sharply, and they have settled close to the 400,000 level in recent weeks.
The latest report comes after the July jobs report showed a bigger-than-expected gain in employment.
Labor market’s recovery has been an important metric for investors, as Federal Reserve officials decided to let inflation run hotter than usual to bring back jobs lost during 2020’s shutdowns. If strong jobs reports are released in August and September, the central bank could start slowing its asset purchases in the fall.
Despite the news, the US stocks opened primarily flat.
Sources: cnbc.com, forexfactory.com