The number of jobless claims in the US fell by 6,000 to 472,000 in the week ended 28 August. These figures reflect that the labor market has not improved this year even though the economy expanded.
While businesses are not sure whether sales will hold up, employment is stagnating and the Federal Reserve expressed its concern over the issue and is worried that “elevated” claims will limit consumer spending, which represents the biggest part of the US economy.
Chris Low, chief economist at FTN Financial commented “the rate of layoffs is still uncomfortably high. We see no reason to expect an acceleration in consumer spending”.
Stock-index futures held earlier gains on Thursday after the report was published.
