US Labor Market Shows Signs of Recovery with Low Layoffs
The US labor market continues to show signs of recovery as layoffs remain low. Initial claims for state unemployment benefits decreased by 1,000 to a seasonally adjusted 206,000 for the week ended September 5. This is consistent with the narrow range of 189,000-212,000 claims seen since mid-July.
The Labor Department reported that nonfarm payrolls jumped 162,000 jobs in August, the largest gain in five months. The unemployment rate remained unchanged at 4.1%. However, long-term unemployment remains a problem, with the median duration of joblessness near 4-1/2-year highs in August.
The number of people receiving unemployment benefits after an initial week of aid slipped 1,000 to a seasonally adjusted 1.774 million during the week ended August 29. This suggests that hiring is slowly picking up pace.