U.S. initial jobless claims fall slightly, data indicate rebounding labor market conditions

U.S. initial jobless claims dropped slightly in the week ended 6 May. Initial claims dropped from 238,000 to 236,000. Consensus expectations were for the claims to rise to 245,000. The four-week moving average changed slightly at 244,00. Initial jobless claims dropped back near historic lows, reversing slight weakness seen at the end of April. Continuing claims for the week ending 29 April stayed below 2 million, declining to 1918k from an upwardly revised 1979k.

The decline in initial claims was led by a considerable drop in claims in New York, Maryland and Michigan and a moderate decline in a few others. Similarly, the decline in continuing claims was driven by New York, Virginia, Michigan and Massachusetts.

Overall, the initial and continuing claims data indicate towards a rebounding U.S. labor market conditions and the data is viewed as supportive of employment growth, stated Barclays in a research report.