US weekly jobless claims drop to 216,000

US weekly jobless claims dropped to 216,000 in the week ending June 15, according to the US Department of Labour. The statistic shows improvement over the previous week's 222,000 unemployment claims. The figure is also below economists’ predictions of 220,000 claims.

Jobless claims numbers back up Fed’s positive outlook on jobs

US unemployment claims are declining as layoffs remain low. The news appears to fall in line with the US Federal Reserve’s assertion that the US economy is still robust. The stable economy was ostensibly one reason that the Fed didn’t decrease interest rates. After its latest Federal Open Market Committee (FOMC) meeting, the US central bank maintained that the job market is solid.

‘So far this year, the economy has performed relatively well. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low,’ noted the Fed.

Jobless claims report shows resilience of US labour market

Jim Baird, chief investment officer at Plante Moran Financial Advisors, said that May’s strong retail numbers show consumer confidence and the strong labour market are boosting the economy.

‘Solid labour market conditions supporting a strong consumer sector provides a solid base underneath the economy,’ said Baird.

He added that though there was a weak May jobs report, unemployment is still at a near record low of 3.6%.

‘Employers aren’t slashing their payrolls. For all of the angst around the May jobs report and the potential that job creation is stalling, it bears repeating: Jobless claims are still quite low, and show no signs of sustained deterioration,’ said Baird.