‘The labor market is stable despite a falling hiring rate,’ said top economist Jeffrey Roach.
The number of Americans claiming unemployment benefits ticked up marginally, as the U.S. labor market remains resilient amid economic uncertainty.
Initial jobless claims rose by 5,000 for the week ending May 23 to 215,000, according to new Department of Labor data released on May 28.
Economists had forecast a tepid 1,000 increase.
Weekly unemployment claims continue to hover near historically low levels and are firmly below averages observed a year ago.
While employment conditions face fundamental shifts—lower immigration and smaller labor force participation—various measurements suggest the job market has been stable in recent months.
“The number of individuals applying for unemployment insurance benefits last week remained low, indicating the labor market is stable despite a falling hiring rate,” Jeffrey Roach, chief economist for LPL Financial, told The Epoch Times in an emailed note.
Despite major companies dominating the headlines with planned job cuts recently, layoffs have been relatively low.
This can be seen in the four-week average, which removes week-to-week volatility. This number rose to a smaller-than-expected 209,000.
At the same time, various figures indicate that hiring momentum could be picking up steam heading into the summer.
In the four weeks ending May 9, private employers added an average of 35,750 jobs per week, according to payroll processor ADP.
Although hiring slowed for the first time in three weeks, private-sector job creation has been elevated since late March.
Continuing jobless claims—the number of out-of-work individuals currently receiving unemployment benefits—remained below 1.8 million for the eighth consecutive week.
Recurring claims did, however, rise to 1.79 million from 1.77 million in the previous week.
Economists use this as a proxy for gauging the labor market’s health and the difficulty or ease workers may have in finding new employment opportunities.
It can also indicate that Americans are exhausting their jobless benefits, since many states cap eligibility at 26 weeks.
By Andrew Moran
