Initial Jobless Claims Lower Then Expected

The number of Americans filing new unemployment claims fell to 340 thousand in the week ending August 28th, the lowest level since March 2020 and below the market consensus of 345 thousand, as the labor market continued to consolidate its recovery following business reopenings in the US and despite lingering concerns about the ongoing COVID-19 resurgence.

Simultaneously, labor shortages continued to have a significant impact on the economy, as employers struggle to find qualified workers to fill open positions.

The number of new claimants is expected to continue to decline in the coming weeks and months as pandemic-era programs, which include both regular state and enhanced federal unemployment benefits, will expire on September 6th in the approximately two dozen states that continue to offer them.