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Jobless Claims Drop in Latest Week as Labor Market Conditions Hold Steady

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Jobless Claims Drop in Latest Week as Labor Market Conditions Hold Steady

Applications for unemployment insurance in the US unexpectedly declined in the latest week as labor market conditions appeared to hold steady, government data showed Thursday.

For the week through July 4, the seasonally adjusted number of initial claims declined by 2,000 to 215,000 from the previous week's average that was adjusted upwards by 2,000, the Labor Department said. The consensus was for a 217,000 print in a Bloomberg poll.

The four-week moving average fell by 3,750 to 218,750 from the prior week's average, which was revised higher by 500. Unadjusted claims rose by 9,967 on a weekly basis to 224,583.

"Initial jobless claims were a touch lower in the week ended July 4, consistent with the low and stable layoff rate that has defined the labor market in recent months," Matthew Martin, senior US economist at Oxford Economics, said in a note e-mailed to. "Summer auto plant shutdowns are running well below prior year levels, which will pressure the seasonally adjusted data lower in the coming weeks."

Seasonally adjusted continuing claims came in at 1.81 million for the week ended June 27, roughly in line with Wall Street's views. Continuing claims rose by 8,000 from the previous week's downwardly revised level. The four-week moving average grew by 7,000 to about 1.81 million from the prior week's average, which was revised down by 2,000, according to the report.

"Claims are holding steady, so there is little evidence of any mounting slack in the labor market," Jefferies Chief US Economist Thomas Simons said in a report e-mailed to.

Based on the claims data, along with last week's nonfarm payrolls figures and ADP's (ADP) private-sector hiring report, Simons said "it seems like the labor market is settling into a pace of job creation that is right in line with the amount necessary to keep the unemployment rate steady."

Last week's data showed the US economy added fewer jobs than expected in June while gains for the prior two months were revised lower. According to the latest ADP report, private-sector employment increased less than expected last month.

The unemployment rate ticked down to 4.2% in June from the prior month's print of 4.3%.

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