Robust GDP growth and falling jobless claims point to resilience in the US economy, even as unemployment touches a two-year high.
After the US economy recorded its highest growth rate of 4.3 per cent in the third quarter—far above estimates of 3.3 per cent and even higher than the 3.8 per cent growth registered in the second quarter—fresh labour market data has added to signs of economic resilience. Initial jobless claims in the US fell by 10,000 to 214,000 for the week ending December 20.
Jobless claims and applications for unemployment aid are considered a proxy for layoffs and a key metric to gauge the health of the broader labour market. Economists and experts have described the current labour market as being locked in a “no-hire, no-fire” mode.
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A report by the US Department of Labor also showed that the number of people receiving ongoing…
