In another good news for the US economy, the number of applications claiming unemployment benefits witnessed a significant drop last week.
The experts see the development very progressing and healing for the US labor market.
A Labor Department report, released today in Washington, showed jobless claims unexpectedly dropped by 3,000 to 302,000 in the week that ended July 12.
The number of applicants continuing to receive unemployment benefits declined by 79,000 to 2.51 million in the week that ended on July 5.
Amid the improvements in the US job market, the Federal Reserve’s regional bank presidents are mulling over whether to push interest rates up from zero sooner than actually planned.
The insiders say most Fed officials at June’s policy meeting didn’t see rate increases until 2015.
“While we’re making progress in the labor market, we haven’t achieved our goal. Until the economy overcomes substantial headwinds the Fed should pursue an accommodative monetary policy,” Fed Chair Janet Yellen told lawmakers in Congressional testimony.
US job data report
The employment growth in the United States surged in June. The surge gave clear indication of decisive evidence to the growing economy after a surprisingly big slump at the start of the year.
The unemployment rate, however, closed in on a six-year low last month.
According to the Labor Department report released last week, nonfarm payrolls increased by 288,000 jobs last month and the jobless rate fell to 6.1 percent, its lowest level since September 2008.
Yelena Shulyatyeva, a US economist at BNP Paribas in New York, said, “Claims are consistent with healthy labor market turnover. The economy is really telling us it’s improving.”
Another report released today showed home construction significantly declined to a nine-month low in June.
According to Commerce Department figures, the builders started work on 893,000 homes at an annualized rate last month. It was down 9.3 percent from May.
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