Jobless Claims

Jobless claims drop 13,000 to 221,000 in late May

Recent upturn in jobless claims halted, layoffs still historically low

By
JEFFRY BARTASH
REPORTER

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Americans hardly need to wait in line to find a job these days. Unemployment has dropped below 4%, and job openings are at a record high.

The numbers: U.S. jobless claims fell at the end of May, suggesting that a recent increase in the rate of layoffs stemmed mostly from seasonal quirks whose effects are already fading.


Initial jobless claims declined by 13,000 to 221,000 in the week ended May 26. Economists polled by MarketWatch had forecast a 225,000 reading.



The more stable monthly average of claims, meanwhile, rose by 2,500 to 222,250.

The number of people already collecting unemployment benefits dropped by 16,000 to 1.73 million, the government said Thursday. These are known as continuing claims.

What happened: Part of the drop in claims last week could reflect people waiting until after the Memorial Day holiday to apply for jobless benefits.

Even if that’s the case, though, layoffs remain near a half-century low, and there’s no sign they are about to reverse course. Jobless claims are likely to remain around 220,000 or so for the foreseeable future.

Big picture: The U.S. labor market keeps getting stronger. Unemployment has fallen below 4% for the first time since 2000, job openings are at a record high, and companies are adopting all kinds of tactics to recruit and retain employees.

That’s why layoffs are so low: Good help is hard to find.

The government on Friday is expected to report the U.S. created 200,000-plus new jobs in May. A smaller increase would suggest the main problem is finding workers, not an unwillingness to hire.

Market reaction: The Dow Jones Industrial Average DJIA, +0.66% and S&P 500 SPX, +0.52% opened lower Thursday. The 10-year Treasury yield TMUBMUSD10Y, +1.59% was little changed at 2.86%.