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Applications for unemployment benefits in USA decreased 40-year low

The number of Americans applying for unemployment benefits declined to a 40-year low last week, which is a signal that the employees retain workers and that employment continues to grow. The number of submitted documents, which are an indicator for the unemployment rate, decreased by 5,000 to a seasonally adjusted value of 249,000 during the week ended September 30. This is the lowest number since mid-April, when she was 43-year low. The economists expected the number of requests for unemployment benefits to be about 255,000 and markets were surprised by the result.

The number of documents for the previous week ended September 23, remain without a revision of the level of 254,000.

The four-week average value, which smooths out volatility between weeks, decreased by 2,500 to 253,500. This is the lowest since December 1973. Moreover, the number of applications submitted remained below 300,000 for 83 consecutive weeks, the longest series of the 70s of last century.

Markets expect the key report on employment growth on Friday. The economists forecast that companies in USA outside agriculture sector to add 170 jobs in September.

On Wednesday came the report The ADP and Moody’s Analytics, according to which the private sector added 154,000 new jobs during the ninth month of the year.

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