First Time Jobless Claims Fall 12K

The coming employment report, this time for August, looks to be roughly as strong if not slightly stronger than prior reports, at least based on jobless claims. New jobless claims in the August 17 week, which was the sample week for the August employment report, fell a sharp 12,000 to a more favorable-than-expected level of 209,000. The 4-week average of 214,500 is down nearly 5,000 from the sample week of the July report.

Continuing claims, in lagging data for the August 10 week, fell a very sizable 54,000 to 1.674 million with this 4-week average down slightly to 1.697 million. The unemployment rate for insured workers is unchanged at 1.2 percent. Low levels for claims points to low rates of layoffs and high demand for labor.