the number of US citizens submitting new applications for unemployment insurance fell to 203K for the week ending August 22.
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance fell to 203K for the week ending August 22. The latest print came in below initial estimates (208K) and was lower than the previous week’s 207K (revised from 206K).
Additionally, the 4-week moving average increased by 1.250K to 205.5K vs. the previous week’s revised prints. The report also indicated that Continuing Jobless Claims dropped by 18K to 1.778M for the week ending August 15. Market reaction The Greenback trades with modest gains on Thursday, with the US Dollar Index (DXY) navigating the 99.20-99.30 band in the wake of the data, helped at the same time by a decent bounce in US Treasury yields across the curve.
Employment FAQs Labor market conditions are a key element to assess the health of an economy and thus a key driver for currency valuation. High employment, or low unemployment, has positive implications for consumer spending and thus economic growth, boosting the value of the local currency. Moreover, a very tight labor market – a situation in which there is a shortage of workers to fill open positions – can also have implications on inflation levels and thus monetary policy as low labor supply and high demand leads to higher wages.