Jobless Claims Fall to 15-Year Low
The four-week average for jobless claims decreased to 266,250 in the period ended May 16 from 271,750, a Labor Department report showed May 21. The figure corresponds to the week the government surveys employers to calculate the monthly payroll data. On a weekly basis, applications rose by 10,000 to 274,000.
Such a limited pace of dismissals indicates companies are anticipating a pickup in demand for their goods and services More job security that sparks bigger wage gains would help propel consumer confidence and make households feel more comfortable spending.
“It’s indicative of a labor market that’s showing no signs of reversal even if the pace of job growth is going to slow,” said Eric Green, head of U.S. economic research at TD Securities USA in New York. Whether it’s 260,000 or 274,000, “the theme here is claims are very low.”
The median forecast of 51 economists surveyed by Bloomberg was 270,000 initial applications for last week. Estimates ranged from 264,000 to 285,000. The prior week’s claims were unrevised at 264,000.
No states estimated jobless claims last week, and nothing in the report was unusual, an agency spokesman said as the figures were released.
The four-week average of claims, which is less volatile than the weekly figure, was the lowest since April 15, 2000.
