The numbers: Initial unemployment claims fell from 2,000 to 231,000 the week ended June 25, the Labor Department said Thursday.
Economists surveyed by the Wall Street Journal had estimated that new claims would reach 230,000 according to the initial estimate of 229,000 last week. This figure was revised to 233,000. The figures are seasonally adjusted.
Key details: The four-week average of new unemployment claims rose from 7,250 to 231,750. This is the highest level since December.
The number of people already receiving unemployment benefits fell by 3,000 to 1.33 million. These so-called ongoing claims have now returned to pre-crisis levels.
Large image: The underlying trend in claims has increased slightly. New applications had dropped to 166,000 by the end of March.
The Fed aims to curb the economy by sharply raising its political interest rate in order to cool inflation. It is not yet known how companies will react. Layoffs can be kept low if companies are reluctant to leave workers given how difficult it has been to find workers.
What they are saying: “The level of claims is still relatively low, but we do not expect claims to fall well below the levels of recent weeks. While labor markets remain tight, reporting reports are on the rise, ”said Nancy Vanden Houten, chief US economist at Oxford Economics.
Market reaction: DJIA shares,
SPX,
it had to open lower on Thursday amid growing fears of recession. The performance of the 10-year Treasury note TMUBMUSD10Y,
it dropped to 3.04%.