‘Labor market supply constraints are expected to bite into job creation but should also help to keep a lid on jobless claims as employers focus on retaining talent, so long as the economy continues to chug along.’ — Jim Baird, Plante Moran Financial Advisors
The number of Americans filing for unemployment aid dropped less than expected in the week ended June 2. The Labour Department reported on Thursday that initial jobless claims fell 10K to 245K last week, following the preceding week’s upwardly revised figure of 255K. Meanwhile, market analysts anticipated a bigger decrease to 241K during the reported week. Nevertheless, claims remained below the 300K level for the 118th consecutive week, the longest streak since 1973. The four-week moving average of claims, considered a better measure of the existing labour market trends, rose 2.25K to 242K during the reported week. Earlier this week, the Labour Department reported that job openings hit their new high in April, whereas the NFP report released last Friday showed a slowdown in job growth. It may be suggested that employers are facing difficulty of finding suitable workers. Thursday’s data also showed that continuous claims dropped 2K to 1.92M in the week ending May 27, whereas their four-week moving average declined 750 to 1.91M, the lowest level since January 1974.
