First-time applications for US unemployment benefits fell last week to the lowest level since 1969, signaling layoffs remain muted in a stable labor market.
Initial claims fell by 22,000 to 187,000 in the week ended July 18, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 210,000 applications.
Continuing claims, a proxy for the number of people receiving benefits, was little changed at 1.8 million in the previous week.
What Bloomberg Economics Says…
“A bigger-than-expected decline in initial jobless claims reflects an imperfect seasonal adjustment process. Overall, the data continue to reinforce signs of limited layoffs ahead of the July 28–29 FOMC meeting. Elevated corporate profit margins are allowing firms to invest while retaining workers, leaving the Federal Reserve focused on the inflation side of its dual mandate.” — Eliza Winger
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