US jobless claims dip, remain elevated ahead of rate decision
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The news: The number of people filing new applications for unemployment benefits fell last week, stabilising near the highest levels seen in eight months.
The numbers: Initial jobless claims in the week ended 14 June dropped by 5,000 to 245,000, in keeping with forecasts by Reuters and Bloomberg. The data released by the US Labor Department on Wednesday also saw continuing claims (a proxy for the number of people receiving social benefits) fall slightly to 1.95 million in the previous week.
The four-week moving average of new applications rose to 245,500, the highest since August 2023.
The context: The data will be watched closely by investors ahead of the Federal Reserve’s rate decision later on Wednesday, with the central bank widely tipped to hold rates steady at 4.25%-4.50%.
Jobless claims have risen over the past two months, suggesting a gradual slowing of the labour market. Retail sales data released on Tuesday indicate a cooling in demand across some sector of the economy.
The report was released one day earlier than usual because of the US’ Juneteenth National Independence Day holiday on Thursday.
The sources: US Department of Labor, Bloomberg, Reuters
