(RTTNews) - The Labor Department released a report on Thursday showing first time-claims for U.S. unemployment benefits unexpectedly edged lower in the week ended May 16th.
The report said initial jobless claims dipped to 209,000, a decrease of 3,000 from the previous week's revised level of 212,000. Economists had expected jobless claims to inch up to 213,000 from the 211,000 originally reported for the previous week.
Matthew Martin, Senior U.S. Economist at Oxford Economics, noted jobless claims have been surprisingly stable over the past few months given the headwinds from the Iran conflict, elevated inflation, and lingering tariff uncertainty.
"Perhaps the most notable thing about claims data right is how unremarkable they are," Martin said. "The labor market isn't booming, but employers remain reluctant to reduce headcount."
The Labor Department said the less volatile four-week moving average also slipped to 202,500, a decrease of 1,500 from the previous week's revised average of 204,000.
Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 6,000 to 1.782 million in the week ended May 9th.
The four-week moving average of continuing claims still fell to 1,773,000, a decrease of 6,500 from the previous week's revised average of 1,779,500.
"Continued claims rose on a seasonally adjusted basis, but the modest increase kept the four-week moving-average on a downward trend, suggesting that displaced workers are still finding new positions despite a weaker hiring environment," said Martin.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
