U.S. Weekly Jobless Claims Unexpectedly Edge Down To 215,000

(RTTNews) - The Labor Department released a report on Thursday unexpectedly showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended July 4th.

The report said initial jobless claims edged down to 215,000, a decrease of 2,000 from the previous week's revised level of 217,000.

Economists had expected jobless claims to rise to 219,000 from the 215,000 originally reported for the previous week.

"Initial jobless claims were a touch lower in the week ended July 4, consistent with the low and stable layoff rate that has defined the labor market in recent months," said Matthew Martin, Senior U.S. Economist at Oxford Economics.

He added, "Summer auto plant shutdowns are running well below prior year levels, which will pressure the seasonally adjusted data lower in the coming weeks."

The Labor Department said the less volatile four-week moving average also slipped to 218,750, a decrease of 3,750 from the previous week's revised average of 222,500.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment benefits, rose by 8,000 to 1.814 million in the week ended June 27th.

The four-week moving average of continuing claims also climbed to 1,808,000, an increase of 7,000 from the previous week's revised average of 1,801,000.

"Continued claims were little changed after accounting for the downward revision to the prior week and remain well below year-ago levels," said Martin. "Improved payroll growth and weak labor supply may translate into lower continued claims in the months ahead."

The Labor Department released a separate report last Thursday showing employment in the U.S. increased by much less than expected in the month of June.

The report said non-farm payroll employment rose by 57,000 jobs in June after jumping by 129,000 jobs in May.

Economists had expected employment to climb by 114,000 jobs compared to the addition of 172,000 jobs originally reported for the previous month.

Meanwhile, the Labor Department said the unemployment rate edged down to 4.2 percent in June from 4.3 percent in May. The unemployment rate was expected to remain unchanged.