The number of Americans filing for initial jobless claims came in far below market expectations, dropping to its lowest level in 57 years.

The U.S. Department of Labor announced on the 23rd (local time) that initial jobless claims for last week (July 12–18) stood at 187,000, a decrease of 22,000 from the previous week.

This marks the lowest level since the week of August 31–September 6, 1969 (182,000).

It also falls short of the expert consensus estimate of 212,000 compiled by Dow Jones.

Continuing jobless claims, which count people who have received unemployment benefits for two weeks or more, edged down by 2,000 from the previous week to 1,796,000 for the week of July 5–11.

These figures are seen as a reaffirmation that the U.S. labor market remains much more robust than anticipated.

While job growth has slowed, the U.S. labor market continues to maintain a balanced state where layoffs also remain at historically low levels.

Consequently, analysts suggest that the Federal Reserve retains the conditions to focus its policy on curbing inflation, which still exceeds its target, rather than the labor market.

The Fed is scheduled to hold its Federal Open Market Committee (FOMC) meeting on the 28–29.

The market expects the benchmark interest rate to be frozen at this meeting.

However, the fed funds futures market is pricing in the possibility of at least one interest rate hike within the year.

(Photo: AP, Yonhap News)