The number of initial jobless claims in the United States fell by 5,000 last week to 245,000 for the week. The number of people receiving benefits also fell slightly to 1.95 million in the previous week, according to data from the US Department of Labor released on Wednesday.
Indicators remain volatile, especially during the holidays or summer school holidays. Overall, the number of applications has been growing over the past two months, indicating a gradual slowdown in the labor market. Employee recruitment has declined, and the level of continuing applications is near the highest levels since the end of 2021, indicating a longer search for work by the unemployed.
The Federal Reserve is expected to leave interest rates unchanged at a meeting later on Wednesday while it assesses the impact of President Donald Trump's tariffs and other measures. At the moment, the impact of increased duties on consumer prices remains subdued.
The four-week moving average for the number of new applications rose to 245,500, the highest since August 2023. Excluding seasonal fluctuations, the number of initial applications decreased last week. The largest declines in the number of applications were recorded in Illinois, California and Georgia.
Other data this week also points to cooling demand in various sectors of the economy. A separate report released on Wednesday noted that the volume of new housing construction in the United States in May fell to the lowest level since the beginning of the pandemic.
