EmailThe initial claims level declined from an upwardly revised 389,000 (from 386,000) for the week ending June 9 to 387,000 for the week ending June 16. The Briefing.com consensus expected the initial claims level to fall to 380,000. There is no doubt that the labor market recovery has stalled. Instead of moving steadily lower, the initial claims level has held tight above 380,000 for the past several weeks.
That level is enough to support minimal job growth, but not enough to support a decline in the unemployment rate. Quite simply, the data show that businesses have a cautious view of the economic outlook and demand picture. The continuing claims level remained at 3.299 mln for the week ending June 9. The consensus expected the continuing claims level to decline to 3.278 mln.
