The number of Americans filing for unemployment benefits just dropped to its lowest level since the seventies, suggesting the economy is continuing to warm up.
Jobless claims fell by 26,000 last week, down to 255,000, and this bullish picture comes on the tails of a report showing that the number of US jobs posted in June was 223,000. Job growth has come in above 200,000 in 14 of the past 16 months.
These are the latest of recent figures all suggesting the labour market is back on track and nearing what the Federal Reserve deems full employment.
In June, unemployment was down to 5.3 per cent, down from a 9.5 per cent high at the peak of the financial crisis.
All isn’t quite rosy however, as earnings fail to impress. June figures showed that hourly earnings were up only 2 per cent, against economists’ goal of 3.5 per cent.