Initial Jobless Claims Fell Below A Million Last Week

This was the first-time initial claims have come in below 1mln in 21 weeks, also beating the consensus estimate of 1.1mln. They fell from the prior 1.191mln, which was revised higher by 5k from 1.186mln. The four-week moving average decreased to 1.252mln, a fall of 86k from the previous week. A total of 56.29mln workers have filed first-time unemployment claims since the start of the pandemic, substantially more than the 22.1mln during the 2008 GFC.


The Labour Department’s insured unemployment rate, an alternative measure of joblessness, fell from the previous week’s print of 11.0pct. This counts the number of people actively collecting benefits compared with the total size of the labour force.


Continuing claims ticked down by 604k from last week, below the expected 15.8mln. The prior reading was revised lower, from 16.107mln to 16.090mln. The four-week moving average dropped by 454k to 16.170mln.


“The improvement in claims is a welcome relief after weeks of stalling at elevated levels in July, and suggests a moderation in the rate of job separations,” said Barclays’ Michael Gapen.