ZCZC
BCN-19
US-ECONOMY-EMPLOYMENT-INDICATOR
US jobless claims fall for fourth straight week
WASHINGTON, June 22, 2018 (BSS/AFP) – US claims for unemployment fell for
the fourth week in a row last week, extending an unprecedented streak of low
levels, the Labor Department reported Thursday.
The continued scarcity of layoffs suggested June was likely to be another
strong hiring month as the data were collected during the survey week for the
department’s more closely watched monthly US employment report.
For the week ending June 16, the number of new claims for jobless benefits
fell by 3,000 to 218,000, marking the 21st week below the level of 250,000.
Claims have now held below 300,000 for more than three years, the longest
such stretch ever recorded.
The less volatile four-week moving average fell a steeper 4,000 to 221,000
claims.
Though they can see big swings from week to week, jobless claims can be
used as a gauge of health of labor markets and the prevalence of layoffs.
With unemployment at its lowest level since 2000, employers are
increasingly stretched to fill open positions, making them unusually
reluctant to lay off workers who will be difficult to replace.
Anecdotal reports indicate companies have begun to rehire retirees and
poach workers from other companies, which is beginning to eat into profits
but has yet to result in statistical signs of faster wage growth.
The Federal Reserve has cited the tight labor markets as a justification
for accelerating the path of interest rate increases this year.
BSS/AFP/HR/1025