Fed Decision Is Incoming. Is US Economy Going To Change? Less Jobless Claims In The USA? Intensified rotation in the US labour market | FxPro

The latest weekly data shows that the number of new jobless claims is dropping further to 1.317 million, a new low since 1969 when the US population was 40% less than now.
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The US labour market is becoming increasingly tight, but at the same time, the rate of job alternation is increasing steadily.

The latest weekly data shows that the number of new jobless claims is dropping further to 1.317 million, a new low since 1969 when the US population was 40% less than now.

At the same time, the number of initial claims last week stood at 218,000 against 197,000 a week earlier, continuing the upward trend of the previous two months.

Since the recurrence rates are methodically declining and the latest employment report noted an increase in employment, it is logical to assume that the rise in initial claims is due to people being more active and finding work quickly.

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One of the secondary effects of the current labour market situation might be a continued high rate of wage growth. This is a good signal of economic activity. Still, it should also increase the vigilance of the hawks at the US Federal Reserve, setting them up to tighten the monetary policy nuts tighter and faster.

Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.