Initial Jobless Claims Decline but Still Remain Elevated

Initial Jobless Claims fell by 6,000 in the latest week, with 233,000 people filing new unemployment claims. There were also 1.839 million people still receiving benefits after filing their initial claim, as Continuing Claims increased by 18,000.

What’s the bottom line? Initial Jobless Claims followed three straight weeks of increases with a modest decline of 6,000. 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.