Jobless claims for the latest week came in lower than expected falling from 279K down to 267K. That was the lowest weekly reading in six weeks and is just 5K above the post-recession low of 262K back in April. As weekly jobless claims illustrate on a regular basis, employment in the US remains on solid footing.
This week’s drop in weekly claims dropped the 4-week moving average down by 2K to 276.75K, which is still 10K above the post-recession low of 266.5K from Mid-May. Over the next few weeks, we will be dropping a number of higher readings from the 4-week count, so more weeks like the last one could put the May low back into play.
On a non-seasonally adjusted (NSA) basis, jobless claims fell by 17.5K down to 258.1K. For the current week of the year, this is nearly 100K below the average of 349.4K since 2000 and also the lowest level since at least 2000. In fact, you have to go all the way back to 1974 to find a week where NSA claims were lower than the current week’s level in the second week of June!