The
number of Americans filing new claims for unemployment aid fell to near a
49-year low last week and private payrolls rose steadily in August, pointing to
sustained labor market strength that should continue to underpin economic
growth.
The
economy so far appears to be weathering an escalating trade war between the
United States and China as well as tensions with other trade partners,
including Canada, the European Union and Mexico, which have rattled financial
markets.
This
likely keeps the Federal Reserve on track to raise interest rates this month
for the third time this year.
“The
economy is in overdrive with jobless claims at lows not seen since the 1960s,
and this gives the Fed the green light to raise interest rates later this month
and take away some of the economy’s punch,” said Chris Rupkey, chief economist
at MUFG in New York.
The
Labor Department
said on Thursday initial claims for state unemployment benefits dropped
10,000 to a seasonally adjusted 203,000 for the week ended Sept. 1, the lowest
level since December 1969.
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