The number of Americans who sent unemployment applications increased more than expected last week, but there is still no sign of a significant cessation of redundancies, although economic growth has shifted to lower exchange rates.
First-time injuries to state unemployment increased 10,000 to a seasonally-adjusted 227,000 for the week ended June 22, said the Ministry of Labor Thursday. Data for the previous week was revised to show 1,000 more applications received than previously reported.
Economists asked by Reuters had forecasts to increase to 220,000 in the past week. The Ministry of Labor said that claims for California and Mississippi were estimated.
The claims could increase further in the coming weeks, as car manufacturers temporarily shut down assembly plants for summer retooling. Businesses implement plant closures at various times, which may throw off the model government uses to remove seasonal fluctuations from the data.
Demands are being monitored for signs of increased dismissal as a result of a recent escalation of US-China trade tensions. Rising economic growth risks from the trade war and low inflation resulted in the Federal Reserve last week with significant interest rate cuts as early as July.
The four-week moving average of initial claims, considered a better target in the labor market Trends as it stretches from the week to infinite volatility, rose 2,250 to 221
Despite the underlying strength of the labor market, the global economy is slowing down. Production is struggling, the trade deficit is increasing again, consumer confidence is ebbing, and the housing sector remains in a soft patch.
Atlanta Fed expects gross domestic product growth to rise to a 1.9% annual rate in April-June quarter. The economy increased by 3.1% in the first quarter after a temporary increase in exports and an accumulation of inventory.
Thursday's demand report also showed the number of people receiving benefits after a first week of assistance increased 22,000 to 1.69 million for the week ended June 15. The four-week moving average of the so-called continued receivables reached 6,500 to 1,69 million.
The sustained claim data covered the week in the household survey, of which June unemployment will be calculated. The four-week average of claims increased 13,000 between May and June survey week, suggesting little change in unemployment, which is close to a 50-year low of 3.6%.