US jobless claims still high

Initial claims may have dropped from the 500k mark three weeks ago but they remain too high at 478k and 472k the past two weeks, according to DBS Group Research.

DBS Group Research said, “For the unemployment rate to start dropping significantly nonfarm payrolls need to rise above 200k per month. Historically, that has been associated with weekly claims down around the 325k level. Plainly, 325k is a long haul from today’s 475k claim rate. In terms of where we have come from and where we need to get to, claims have traveled about 50% of the way over the past 18 months.”

It added all eyes will be watching tomorrow’s weekly jobless claims figures with mid-term elections coming up and notably few data on the calendar this week.