US jobless claims fall to 202,000 in March
US March jobless claims are the lowest in almost 50 years.
US jobless claims are down to their lowest levels in 49 years according to the US Labour Department. New unemployment claims fell by 10,000 to 202,000 by the end of March, less than the 216,000 expected by economists.
US March jobless claims details
The scarcity of workers in a still strong economy has led to a reduction of unemployment claims over the past month. In addition to a decline in new jobless claims, the number of workers collecting continuous unemployment dropped by 38,000 to 1.72 million as well. The robust labour market shows there is still a demand for skilled employees as the unemployment rate is still low at 3.8%.
Mixed employment news as job layoffs surge
While jobless claims decreased, there was negative economic news as layoffs increased. According to a report from outplacement company, Challenger, Gray & Christmas, job layoffs grew by 35% and hit their highest point in four years. Andrew Challenger, vice president of Challenger, Gray, & Christmas, noted that technological advances have led to companies streamlining their workforces.
‘Companies appear to be streamlining and updating their processes, and workforce reductions are increasingly becoming a part of these decisions. Consumer behavior and advances in technology are driving many of these cuts,’ said Challenger.
Challenger also said that the layoff statistics point to a possible slowdown in the US economy.
‘Several indications, such as the number of companies filing for bankruptcy or closing operations, suggest we’re heading for a downturn. The recent proposal to close the southern border adds to the uncertainty and may contribute to more cuts as companies try to adapt,’ said Challenger.
Wall Street will be watching the non-farm payroll reports later this week to see if the US economy is still strong or experiencing a downturn.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.