WASHINGTON - New applications for U.S. jobless benefits fell more than expected last week, but the labor market appears to be cooling, with the number of Americans on unemployment rolls surging to more than a 1-1/2-year high at the end of 2019.
“Jobless claims have returned to normal levels, showing the labor market is in a good place,” said Chris Rupkey, chief economist at MUFG in New York. U.S. financial markets were little moved by the data as politics dominated sentiment. Stocks on Wall Street rose, with the main indexes hitting record highs after the United States and Iran moved away from an all-out conflict.
“The continuing claims data also may exhibit some volatility around the holiday season, but the trend in the data appears to have weakened over the past month or so,” said Daniel Silver, an economist at JPMorgan in New York.Labor market strength is helping to keep the economy on a moderate growth pace despite a deepening downturn in manufacturing. The White House’s 18-month trade war with China has sapped business confidence and undercut capital expenditure.
They may go up next week after Oxy drops the axe.