We got the jobs!

Unemployment claims hit 49-year low

The number of Americans filing new claims for unemployment aid fell to a 49-year low on Sept. 1, and private payrolls rose steadily in August, pointing to sustained labor market strength that should continue to underpin economic growth.

The economy so far appears to be weathering an escalating trade war between the US and China as well as tensions with other trade partners, including Canada, the European Union and Mexico, which have rattled financial markets.

The Labor Department said on Thursday initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended Sept. 1, the lowest level since December 1969.

This likely keeps the Federal Reserve on track to raise interest rates this month for the third time this year.

“The economy is in overdrive with jobless claims at lows not seen since the 1960s, and this gives the Fed the green light to raise interest rates later this month and take away some of the economy’s punch,” said Chris Rupkey, chief economist at MUFG in New York.

Economists polled by Reuters had forecast claims rising to 214,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,750 last week to 209,500, also the lowest level since December 1969.

Economists say given labor market tightness, employers were reluctant to lay off workers. The labor market is viewed as being near or at full employment.