US labour market tightens as jobless figures drop

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US labour market tightens as jobless figures drop

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The number of people out of work in the United States has dropped, pointing to a tightening labour market.

According to a government report, unemployment fell 12,000 to a seasonally adjusted 267,000 for the week ending June 13.

Other data shows first time applications for jobless benefits slid down to a 15-year low.

At the same time US consumer prices recorded their largest hike in more than two years as gasoline prices surged.

It comes a day after the Federal Reserve said the US economy is likely strong enough to withstand an interest rate hike later this year.

Nonetheless, Fed Chair Janet Yellen said she wanted “more decisive evidence” that labour markets were healing and that wages would increase beyond their current “subdued pace.”