US Initial Unemployment Claims Rose More Than Expected Last Week

Forex News

Unemployment claims in the US rose last week, but the number of unemployed Americans fell to the lowest level since 1973, indicating a decrease in weakness in the labor market. Data from the US Labor Department showed, that initial jobless claims rose by 11.000 to a seasonally adjusted 222.000 for the week ended May 12, above the forecast of 215.000.

Continuing jobless claims, which measures the number of people still receiving benefits after an initial week of aid, came in at 1.707.000 in the previous week, compared with the forecast of 1.780.000. The report also showed, that the number of people receiving benefits after an initial week of aid declined by 87.000 to 1.71 million in the week ended May 5, the lowest level since December 1973.

The US labor market is viewed as being close to or at full employment, with the jobless rate near a 17-1/2-year low of 3.9%. The Federal Reserve forecasts a 3.8% unemployment rate by the end of this year.