Initial jobless claims unexpectedly fell for the second consecutive week, another sign that layoffs remain relatively subdued despite recent concerns about the strength of the labor market.
Why it matters: Weekly claims are one of the timeliest indicators of labor-market conditions, and the latest numbers continue to suggest employers aren’t significantly increasing layoffs.
- Seasonally adjusted initial claims fell to 203,000, down 4,000 from the previous week’s revised level and marking the second straight weekly decline.
- The trend, however, has weakened slightly. The four-week moving average increased by 1,250 to 205,500, its third consecutive weekly increase.
Continuing claims also improved, falling to 1.78 million for the week ending August 15, down from 1.8 million the previous week. Continuing claims have now been around 1.78 million three times in the past five weeks.
The bottom line: Other labor-market reports have raised questions about slowing job creation, but jobless claims continue to show little evidence of a meaningful increase in layoffs. For the Fed, that keeps the focus squarely on inflation as policymakers consider their next move.