US jobless claims' downwards trend continues

Thursday 19 June 2014 15.06
New US data points to a continuing downward trend in job losses
New US data points to a continuing downward trend in job losses

New US claims for unemployment insurance benefits fell last week, continuing to point to a downward trend in job losses, official data released today showed. 

The Labor Department said initial jobless claims fell by 6,000 to 312,000 in the week ending June 14, following three  weeks of gains in a row. The previous week's level was revised up to 318,000 from 317,000. 

The number of new claims last week came in slightly below the consensus estimate of 313,000. 

First-time claims, a sign of the pace of layoffs, have been declining over the past year amid job growth that has picked up in recent months.

The four-week moving average, which smoothes weekly volatility, was 311,750, compared with a revised 315,500 the prior week. A year ago the moving average stood at 346,500.

For all people receiving unemployment insurance benefits, the four-week moving average tumbled by 21,750 to 2.58 million, the lowest level since early November 2007. 

The US unemployment rate is at a six-year low of 6.3%, and the economy added more than 200,000 jobs for the fourth straight month in May.

The Federal Reserve held its ultra-easy policy course steady last night, predicting "moderate" growth in the economy this year.

"Labour market indicators generally showed further improvement and labour market conditions will continue to improve gradually," the Federal Open Market Committee said in a post-meeting statement.