(Kitco News) – The U.S. labor market remains highly volatile as fewer workers than expected applied for first-time employment benefits. This is the first drop in weekly jobless claims in nearly a month.
Thursday the U.S. Labor Department said that weekly jobless claims fell by 38,000 to 326,000, down from the previous week’s revised estimate of 362,000 claims.
The latest labor market data handily beat expectations as economists were looking for a reading around 350,000.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – fell to to 344,000 up by 3,5000 claims from the previous week.
The gold market is not seeing much movement in relation to the latest labor market data. December gold futures last traded at $1,758.50 an ounce, down 0.18% on the day.
Continuing jobless claims, which represent the number of people already receiving benefits fell to a new pandemic low. Continuing claims dropped to 2.714 million during the week ending Sept. 25, down 97,000 from the previous week’s revised level.
“This is the lowest level for insured unemployment since March 14, 2020 when it was 1,770,000,” the report said.
Economists are closely watching weekly jobless claims numbers because an improvement in the labor market could prompt the Federal Reserve to announce a reduction in its bond purchase program before the end of the year.