U.S. jobless claims fall;
labor market slack diminishing
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[June 15, 2017]
WASHINGTON,
June 15 (Reuters) - The number of Americans filing for unemployment
benefits fell more than expected last week, pointing to shrinking labor
market slack that could allow the Federal Reserve to raise interest
rates again this year despite moderate inflation growth.
Initial claims for state unemployment benefits dropped 8,000 to a
seasonally adjusted 237,000 for the week ended June 10, the Labor
Department said on Thursday.
Data for the prior week was unrevised. Claims have unwound nearly all
the jump in late May that was blamed on difficulties adjusting the data
around moving holidays. Economists polled by Reuters had forecast
first-time applications for jobless benefits falling to 242,000 in the
latest week.
Claims have now been below 300,000, a threshold associated with a
healthy labor market, for 119 straight weeks. That is the longest such
stretch since 1970, when the labor market was smaller. The labor market
is near full employment, with the jobless rate at a 16-year low of 4.3
percent.
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The Fed on Wednesday raised its benchmark overnight interest rate by 25
basis points, the second rate hike this year, saying it expected
economic activity to expand at a moderate pace and labor market
conditions to strengthen somewhat further.
The U.S. central bank acknowledged the recent retreat in price
pressures, which has pushed inflation well below the Fed's 2 percent
target.
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![](../images/061517pics/busine48.jpg)
Recruiters and job seekers are seen at a job fair in Golden,
Colorado, June 7, 2017. REUTERS/Rick Wilking
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A
Labor Department official said there were no special factors influencing the
claims data. Only claims for Louisiana and Hawaii were estimated.
The four-week moving average of claims, considered a better measure of labor
market trends as it irons out week-to-week volatility, rose 1,000 to 243,000
last week. While monthly job growth has slowed, record high job openings suggest
that is likely because companies cannot find qualified workers.
Thursday's claims report also showed the number of people still receiving
benefits after an initial week of aid increased 6,000 to 1.94 million in the
week ended June 3. The so-called continuing claims have now been below 2 million
for nine straight weeks, pointing to diminishing labor market slack.
The four-week moving average of continuing claims rose 9,000 to 1.93 million,
remaining below the 2 million mark for seven consecutive weeks.
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