After reporting modest increases in first-time claims for U.S. unemployment benefits over the three previous weeks, the Labor Department released a report on Thursday showing a slight pullback in initial jobless claims in the week ended July 23rd.<\/p>\n
The report showed initial jobless claims edged down to 256,000, a decrease of 5,000 from the previous week’s revised level of 261,000.<\/p>\n
Economists had expected jobless claims to inch up to 253,000 from the 251,000 originally reported for the previous week.<\/p>\n
The upwardly revised figure for the previous week reflects the highest level of jobless claims since they hit 265,000 in the week ended November 13, 2021.<\/p>\n
Meanwhile, the Labor Department said the less volatile four-week moving average crept up to 249,250, an increase of 6,250 from the previous week’s revised average of 243,000.<\/p>\n
“While we think the risk may be for further increases in claims as economic growth slows, we don’t anticipate a sharp rise from current levels as labor market conditions are still tight, with demand for workers outstripping supply,” said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.<\/p>\n
The report also showed continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 25,000 to 1.359 million in the week ended July 16th.<\/p>\n
The four-week moving average of continuing claims still rose to 1,362,000, an increase of 8,750 from the previous week’s unrevised average of 1,353,250.<\/p>\n
“We don’t see further downside for continued claims, but don’t foresee a significant rise either based on our outlook for job growth to continue, although at a much slower pace, and for more workers to return to the labor force,” said Vanden Houten.<\/p>\n
Next Friday, the Labor Department is scheduled to release its more closely watched report on the employment situation in the month of July.<\/p>\n
Economists currently expect employment to jump by 260,000 jobs in July after surging by 372,000 jobs in June. The unemployment rate is expected to hold at 3.6 percent. <\/p>\n