What Do September Jobless Claims Mean for Auto Industry?
September jobless claims
According to the latest data released for the week ended September 16, 2017, the SAAR (seasonally adjusted annual rate) for US initial jobless claims was at 259,000. This data, released on September 21, reflected a sharp fall from the previous week’s jobless claims SAAR of 282,000.
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The US Department of Labor releases the initial jobless claims data every week. This data tracks employment conditions and shows how many people in the US applied for unemployment benefits in the previous week. Jobless claims are considered to be an important indicator for the labor market.
This figure on an NSA (not seasonally adjusted) basis suggests that 212,297 US citizens claimed unemployment benefits during the week ended September 16. This figure didn’t demonstrate any major change from the 212,284 people who claimed benefits the previous week.
4-week moving average
Despite a recent sharp rise, the four-week jobless claim moving average was at 268,750, not far away from its 44-year low. As a week’s time is a very short period to analyze the trend in jobless claims, investors often prefer the four-week average to eliminate any statistical noise from the data.
In general, jobless claims below 300,000 are considered to reflect strength in the jobs market. A recent drop in job claims could be a positive indicator for auto sales going forward.
Continue to the next article where we’ll see what to expect from September non-farm payroll data.