Initial Jobless Claims fell by 10,000 in the latest week as 222,000 people filed for unemployment benefits for the first time. Continuing Claims rose 13,000, with 1.794 million people still receiving benefits after filing their initial claim.
What’s the bottom line? While Initial Jobless Claims declined from the previous week, they remain in breakout territory above the low levels that were recently reported (ranging from 208,000 to 213,000 in nine of the ten weeks before these last two reports). Continuing Claims are also still trending near some of the hottest levels we’ve seen in recent years.
This data follows other recent reports that suggest softening in the labor sector, such as weaker than expected job growth in April, declining job openings, and the low quit rate. If softer employment data continues, this could pressure the Fed to cut the Fed Funds Rate, given their dual mandate of price stability and maximum employment.