(Bloomberg) — Initial applications for US unemployment benefits pulled back from a 10-month high last week, in data that tend to be volatile around holidays and school breaks.
Initial claims decreased by 5,000 to 238,000 in the week ended June 15, after reaching a 10-month high the previous week, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 235,000.
Continuing claims, a proxy for the number of people receiving unemployment benefits, rose for a seventh straight week to 1.82 million as of June 8, just 1,000 shy of the highest level since the end of 2021.
Applications for unemployment benefits have remained subdued over the past year, as the labor market showed resilience in the face of high prices and interest rates.
The four-week moving average, which smooths short-term fluctuations, rose to 232,750, the highest level since September.
Initial claims before adjustment for seasonal impact fell to 227,213. California posted a moderate decline, only partially unwinding a large jump in the prior week. Applications in Minnesota and Illinois also fell.
Connecticut registered the largest gain in weekly claims in almost two years. Wisconsin applications rose as well.
What Bloomberg Economics Says…
“After rising significantly over the prior two weeks, jobless claims remained elevated in the survey week for the June employment report. We expect labor-market conditions to continue to cool as demand for labor drops further and the supply of available workers increases.”
-Eliza Winger, economist
To read the note, see here
In the 20 years preceding the Covid-19 pandemic, weekly initial applications averaged about 345,000, and continuing claims roughly 2.9 million.
Separate data Thursday showed that new home construction in the US slumped in May to the slowest pace in four years.
–With assistance from Erik Wasson and Daniel Neligh.
©2024 Bloomberg L.P.
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