US jobless claims fall slightly, remain near 5-month high

APPLICATIONS for US unemployment insurance fell, though remained near January levels, suggesting that labour market conditions are moderating.

Initial unemployment claims decreased by 2,000 to 231,000 in the week ended Jun 25, Labor Department data showed on Thursday (Jun 30). The median estimate in a Bloomberg survey of economists called for 230,000 applications.

Continuing claims for state benefits fell slightly to 1.33 million in the week ended Jun 18.

Jobless claims have been hovering in the 230,000 range for the past 4 weeks, a level not seen since the beginning of the year when the Omicron variant was at its peak. Demand for labour is expected to weaken further as interest rates rise and firms anticipate a potential recession. 

In the past week, companies including Netflix and Tesla have laid off hundreds of employees amid concerns about the economic outlook.

The jobless claims 4-week moving average, a measure which smooths out some of the volatility in the series, has risen in 11 of the last 12 weeks, and now stands at 231,750.

SEE ALSO

US jobless claims little changed, near five-month high

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

On an unadjusted basis, initial claims rose to 207,421 last week. That reflected large increases in New Jersey and Massachusetts, while applications in Texas and Georgia declined. BLOOMBERG