Initial jobless claims fall more than forecast, easing some fears about US labor market

Initial filings for unemployment insurance fell more than expected last week, offering some relief to markets worried about further signs of deterioration in the US labor market and the broader economy.

New data from the Department of Labor showed there were 233,000 initial jobless claims filed in the week ending Aug. 3, down from 250,000 the week prior and below the 240,000 economists had expected. In the week ending July 27, jobless claims hit their highest level since August 2023.

Meanwhile, the number of continuing applications for unemployment benefits hit its highest level since November 2021, with 1.875 million claims filed in the week ending July 27, up 6,000 from the week prior.

“This morning’s report suggests that that may be more of a normalization in terms of [labor market] conditions, as opposed to an indication of outright weakness lurking around the corner,” Stifel’s chief economist Lindsey Piegza told Yahoo Finance.

 

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