The number of applications for unemployment benefits increased by 3,000 during the last week, reaching the highest value since end of June at 269,000. Despite the rise, however, the figure remains far from peak levels for the year of 277,000 in mid-June. The applications for unemployment benefits sometimes rose in July because automakers traditionally close factories for maintenance and modernization, so many of their employees are not entitled to temporary benefits. In recent years, these periods had become rarer because of rising car sales, but still exist and reflect the labor market.
The number of submitted applications for unemployment benefits still remains below the level of 300,000 for 74 consecutive weeks, which is the longest series since 1970 and an indication of the good condition of the labor market.
The US Federal Reserve reported a recovery in employment in July 2016 and hinted that if the data permit, can proceed to the tightening of monetary policy by the end of this year.
Today, the market participants are waiting for data on new job creation, with the exception of the agricultural sector in USA. The market expects data of around 175,000, which values would have a positive effect on the dollar. In addition, investors will monitor also the data on average hourly earnings, which is a barometer of inflation.
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British labor market is losing momentum in Q3 2016
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