Hannah Pedone | Bloomberg
In an encouraging sign for the US labor market, applications for unemployment benefits in the country dropped to their lowest level in two months last week. This suggests that the demand for workers remains strong even as job gains moderate.
According to data published by the Labor Department on Thursday, initial jobless claims fell by 9,000 to 228,000 for the week ending July 15. This figure came in below the median estimate of 240,000 new claims projected by economists in a Bloomberg survey.
However, continuing claims, which track the number of individuals receiving unemployment benefits for more than a week, increased by 33,000 to reach 1.75 million for the week through July 8. This marked the largest rise in over three months.
The data suggests that businesses are retaining their employees despite the slower pace of payroll expansion in recent months. A strong job market has played a critical role in supporting consumer spending and provides hope that the economy will avoid a recession this year.
The four-week moving average of initial claims also showed a positive trend, reaching a six-week low of 237,500. This figure helps smooth out the volatility in weekly numbers.
On an unadjusted basis, claims remained relatively unchanged for the week ending July 15. However, there were increases in applications from states like California, Georgia, and South Carolina, while other states such as Michigan and Kentucky saw declines.
These latest claims figures align with the survey week for the Labor Department’s upcoming monthly jobs report, which is scheduled to be released on August 4.
–With assistance from Reade Pickert and Jordan Yadoo.
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