U.S. Jobless Claims Rise to 215,000 as Labor Market Holds Up

(Bloomberg) -- Filings for U.S. unemployment benefits edged up while remaining at historically low levels, another indication that the labor market remains generally robust.

Jobless claims rose by 8,000 to 215,000 in the week ended July 27, according to Labor Department figures released Thursday that slightly exceeded the median estimate in Bloomberg’s survey of economists. The four-week average, a less-volatile measure, declined to a three-month low of 211,500.

Key Insights

• Those readings reinforce Federal Reserve Chairman Jerome Powell’s comments Wednesday that the labor market remains strong. He also said policy makers expect job growth to be slower than last year but still sufficient to hold the unemployment rate steady.
• The claims report comes just before the Labor Department’s payrolls report Friday, which is forecast to show job gains moderated to a still-solid 165,000 in July as the unemployment rate declined back to match a half-century low of 3.6%.

What Bloomberg’s Economists Say

“Jobless claims continue to point to sustained labor market strength. Layoffs increased modestly after falling to a three-month low in the prior week, while the four-week moving average, a steadier measure, remained exceptionally low by historical standards.”
--Eliza Winger
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• Continuing claims, reported with a one-week lag, increased by 22,000 to 1.699 million in the week ended July 20.
• The unemployment rate among people eligible for benefits held at 1.2%, a level that’s remained unchanged for more than a year.
• Economists surveyed by Bloomberg had forecast that claims would rise to 214,000. The prior week’s reading was revised up by 1,000 to 207,000.

--With assistance from Jordan Yadoo.

To contact the reporter on this story: Reade Pickert in Washington at epickert@bloomberg.net

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Jeff Kearns, Vince Golle

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