US Initial Jobless Claims Inch Down

The number of people claiming unemployment benefits in the US fell by 3,000 to 209,000 on the second week of May, aligned with market expectations of 210,000. In the meantime, continuing jobless claims, which are a proxy for outstanding unemployment, rose by 6,000 to 1,782,000, slightly under the expectations of 1,790,000. The results extended the period of stability since the declines in initial claims earlier this year, maintain the backdrop of a robust labor market and adding leeway for the Fed to remain restrictive. Meanwhile, initial claims filed by federal employees, which have been under scrutiny due to government shutdowns that have delayed unemployment insurance filing, rose by 32 to 424.

The number of people claiming unemployment benefits in the US rose by 12,000 from the previous week to 211,000 on the first week of May, above market expectations of 205,000. Continuing jobless claims, which are a proxy for outstanding unemployment in the US, rose by 24,000 to 1,782,000, slightly under the expectations of 1,790,000. Despite the increases, the claim counts remained well under their respective averages from the previous year, aligning with other data that reflect a robust labor market and low levels of job cuts. Meanwhile, initial claims filed by federal employees, which have been under scrutiny due to government shutdowns that have delayed unemployment insurance filing, fell by 46 claims to 392.

The number of people claiming unemployment benefits in the US rose by 10,000 from the from the count in previous week, which tied for the lowest since 1969, to 200,000 in the last week of April. It was below market expectations of 205,000 to remain firmly under the recent and historical average. Meanwhile, continuing claims, which are a proxy for outstanding unemployment in the US, fell by 10,000 to 1,766,000 on the week ending April 25th, the lowest in over two years and contrasting with expectations of an increase to 1,800,000. The data consolidated recent signals of a robust labor market in the US despite momentary signs of stress earlier in the year and repeated headlines indicating job cuts by major companies. Meanwhile, initial claims filed by federal employees, which have been under scrutiny due to government shutdowns, fell by 8 claims to 438.