However, the previous week’s figure was revised upwards by 1,000. According to this, there were 250,000 applications for assistance in the previous week. This was the highest figure in a year. The weekly initial applications are closely monitored on the financial markets because they are considered a timely indicator of the US labor market. The job market plays an important role in the monetary policy of the US Federal Reserve, as it also provides information on wages and thus on general price developments.
Recently, the US labor market has shown signs of weakness. The US government’s labor market report for July was disappointing. It showed unexpectedly weak job growth and, at 4.3 percent, the highest unemployment rate in almost three years.
Above all, the increased unemployment rate fueled fears of a recession in the US economy on the financial markets. This was one of the main reasons for the sharp fall in stock prices at the beginning of the week. On the foreign exchange market, the US dollar reacted to the latest labor market data with losses. In contrast, the euro fell to a daily low of 1.0908 dollars./jkr/jsl/mis
