Weekly U.S. Jobless Claims Rise To 229,000

US initial unemployment claims rose slightly in the week ending May 20, according to a Labor Department report released on Thursday.

Insurance Claims ( Photo: The Maine Center For Economic Policy )

Initial claims for unemployment benefits rose from last week’s revised figure

The number of Americans filing for unemployment benefits unexpectedly rose last week, but the increase was modest, suggesting substantial employment gains in March should support consumer spending. The Labor Department announced Thursday. Data for the previous week have not been corrected. Claims fell to 210,000 in the week ending February 24, the lowest level since December 1969. Economists polled by Reuters had expected claims to fall to 225,000 last week. For the 159th straight week, the number of applications has fallen below the 300,000 mark, the benchmark associated with a strong labor market. This is the longest period of its kind since 1970 when the labor market was much contracted.

The labor market is at or near full employment

The US Federal Reserve hiked rates on Wednesday, predicting at least two more in 2018 in a vote of confidence in the economy. The Fed said it expects “job market conditions to remain strong.” The Labor Department announced last week that it had estimated the number of applications in Maine and Colorado. Economists are optimistic that tightening labor market conditions will lead to faster wage growth in the year’s second half. This will help support consumer spending, which eased earlier this year.

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