(Bloomberg) -- Filings for U.S. unemployment benefits declinedto a 12-week low, underscoring the Federal Reserve's view that arobust labor market is underpinning economic expansion.
Jobless claims dropped to 209,000 in the week ended July 6,which included the July 4 holiday, according to Labor Departmentdata released Thursday. The figure was less than all estimatesin a Bloomberg survey. The four-week average, a less-volatilemeasure, fell to 219,250 from 222,500.
Key Insights
- The drop in claims reinforces Fed Chairman Jerome Powell's message in congressional testimony Wednesday that the labor market remains strong and is supporting consumer spending. He also said companies were still struggling to find skilled workers, though wages were by no means running hot. At the same time, other parts of the economy are slowing, particularly manufacturing.
- A Labor Department report last week showed payrolls growth in June exceeded all economist estimates, indicating a firmer job market that's luring more workers from the sidelines.
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- Continuing claims, which are reported with a one-week lag, climbed by 27,000 to 1.72 million in the week ended June 29.
- The unemployment rate among people eligible for benefits held at 1.2%.
- Economists surveyed by Bloomberg forecast 221,000 claims were filed in the latest week. No states or U.S. territories estimated claims.
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