Jobless claims fell less than expected while continuing claims rose for the second straight week signaling a slightly cooler labor market, according to the latest data from the Department of Labor
- Initial jobless claims decreased to 222,000, a drop from the previous week’s 230,000 but still above the expected 220,000. This signals a slower-than-anticipated reduction in new unemployment claims.
- Continuing claims, which track the number of people still receiving unemployment benefits after an initial week of aid, increased to 1,794,000. This 13,000 rise marks the second straight week of increases, hinting at difficulties for some job seekers in finding new employment.
The big picture: Initial jobless claims fell slightly less than anticipated for the week ending May 11, suggesting a modest improvement in the labor market. However, the rise in continuing claims indicates potential challenges for those already unemployed.
What to watch: The mixed signals from initial and continuing claims will be closely monitored to gauge the overall health of the labor market. Any sustained increases in continuing claims could point to longer-term issues in job recovery.
