U.S. initial jobless claims remain at stable levels, continue signalling sound labor markets

U.S. initial and continuous jobless claims keep on signalling sound labor markets. Initial jobless claims for the week ended 10 June dropped to 237k, falling by 8k, declining slightly more than anticipated. The four-week moving average came in at 243k, consistent with levels seen in late January 2017. For the week ended 3 June, continuing claims rose to 1935k from an upwardly revised 1929k. The series has been below the 2mn mark for over two months. The insured jobless rate remained stable at 1.4 percent and stands two-lengths below year-ago levels.

State-wise, a total of 31 out of the 53 states recorded a decline in jobless claims. The drop was led by California, Ohio and Arizona. Similarly, 60 percent of the states saw a drop in continuing claims. In all, the initial and continuing claims data continue to imply rebounding U.S. labor market conditions and the data is viewed as supportive of ongoing growth in employment at rates enough to keep the jobless rate on a downward path, noted Barclays in a research report.