Jobless Claims in US Resume Decline Amid Tight Labor Market
The U.S. labor market remains a bright spot in the economy as fewer Americans filed for unemployment benefits last week, with hiring managers decrying a scarcity of available workers, Labor Department data showed June 8.
Highlights of Jobless Claims
• Initial jobless claims decreased by 10,000 to 245,000 (forecast was 240,000).
• Continuing claims fell by 2,000 to 1.92 million in the week ended May 27 (data reported with one-week lag).
• Four-week average of initial claims, a less-volatile measure than the weekly figure, rose to 242,000 from 239,750 in the prior week.
Key Takeaways
The latest figures could be subject to seasonal fluctuations just after the Memorial Day holiday and as the school year starts coming to a close. While claims were revised up for the previous week, the original report for that period contained estimates for some of the largest states.
The U.S. economy retains a tight labor market with historically low levels of Americans filing claims as hiring managers worry more about finding and retaining workers than shedding staff. The muted benefits filings have contributed to the Federal Reserve’s case that the economy can absorb further interest-rate increases.
Other Details
• Previous week’s initial claims revised to 255,000 from 248,000.
• Louisiana had estimated claims last week.
• Unemployment rate among people eligible for benefits unchanged at 1.4%.
