Jobless Claims Tick Up as Labor Market Remains Tight
The U.S. labor market still is signaling progress even with an increase in filings for unemployment benefits the week of June 19, Labor Department figures showed June 29.
Highlights of Jobless Claims
• Jobless claims rose by 2,000 to 244,000 (forecast was 240,000); remain near 227,000 level in February, the lowest since 1973.
• Continuing claims were up by 6,000 to 1.948 million in week ended June 17 (data reported with one-week lag).
• Four-week average of initial claims, a less-volatile measure than the weekly figure, decreased to 242,250 from 245,000 in prior week.
Key Takeaways
A shortage of qualified workers is making employers reluctant to let go of people they have, keeping the underlying trend in jobless claims near the lowest level in more than four decades. While weekly data can be volatile, other recent reports such as monthly hiring and job openings show demand for labor remains solid. That’s among reasons why consumer spending and economic growth are projected to rebound this quarter after a relatively weak start to the year.
Other Details
• Prior week’s reading was revised up to 242,000 from 241,000.
• Unemployment rate among people eligible for benefits was unchanged at 1.4%.
• Louisiana’s claims last week were estimated.
