Initial Jobless Claims fell by 5,000 in the latest week as 238,000 people filed for unemployment benefits for the first time. Continuing Claims rose 15,000, with 1.83 million people still receiving benefits after filing their initial claim.
What’s the bottom line? While Initial Jobless Claims fell last week, they remain at elevated levels, with the latest reading the highest number of first-time filers in 10 months. Continuing Claims are also still trending near some of the hottest levels we’ve seen in recent years, suggesting that the pace of hiring has slowed. The Fed will be closely watching for any rising trends in unemployment claims as they weigh monetary policy and the timing for rate cuts, given their dual mandate and price stability and maximum employment.