Jobless claims remain unchanged at 205,000 amid tight labor market
By Ishika Dangayach on Dec 23, 2021 | 03:33 AM IST
• Initial jobless claims increased to 205,00 last week
• The 4-week moving average edged down to 206,250
New claims for unemployment in the United States remain unchanged from the previous week's revised level, as businesses seek to retain employees amid a tight job market.
The Labour Department reported on Thursday 205,000 claims same as the week ending December 4, which was revised down by 1,000 from 206,000 to 205,000.
Economists polled by The Wall Street Journal anticipate that first jobless claims remained stable at a seasonally adjusted 206,000 in the week ending Dec. 18, unchanged from the previous week.
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The 4-week moving average was 206,250, an increase of 2,750 from the previous week's revised average. The previous week's average was revised down by 250 from 203,750 to 203,500.
The advance seasonally adjusted insured unemployment rate was 1.4 percent for the week ending December 11, unchanged from the previous week's unrevised rate.
The fall in the number of Americans claiming unemployment benefits dropped sharply, reflecting the impact of the end of several federal pandemic benefits programs by the states.
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Though the recently discovered Omicron version of Covid-19 poses a possible danger to the labor market and the entire economy.
U.S. third-quarter GDP
The third-quarter economic growth rate in the United States was revised marginally higher, although it remained the worst since the second quarter of 2020.
The Commerce Department reported on Wednesday that the gross domestic product expanded at an annualized pace of 2.3 percent for the July-September quarter.
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The GDP was predicted to be 2.1 percent last month. In the second quarter, the economy increased at a rate of 6.7 percent.
Growth was impeded in the third quarter by tight global supply networks, as well as Hurricane Ida at the end of August.
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Picture Credits: CNBC