FX.co ★ U.S. Weekly Jobless Claims Rebound Modestly To 232,000

The Labor Department reported a modest increase in first-time claims for U.S. unemployment benefits for the week ending August 17, following decreases observed over the previous two weeks.

The number of initial jobless claims rose to 232,000, up 4,000 from the preceding week's revised total of 228,000. Economists had predicted a slight rise to 230,000 from the initially reported 227,000.

The less volatile four-week moving average saw a decline, edging down by 750 to 236,000 from the prior week's revised figure of 236,750.

"Although initial jobless claims rose modestly in the week ending August 17, they remain at a level indicative of a slight drop in the unemployment rate for August," stated Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics. She further commented, "Claims are stabilizing on a trend basis, which aligns with our outlook that, despite some labor market softening, the conditions do not justify more than a 25 basis point rate cut at the Federal Reserve's September meeting."

Additionally, continuing claims, representing those receiving ongoing unemployment assistance, increased by 4,000 to 1.863 million for the week ending August 10, marking the highest level since November 2021. The four-week moving average of continuing claims also climbed, reaching its highest since November 2021, with an increase of 4,750 to 1,865,500 from the previous week's adjusted average of 1,860,750.

Data revised and released by the Bureau of Labor Statistics on Wednesday indicated that job growth from March 2023 to March 2024 was weaker than initially estimated. The U.S. economy added 818,000 fewer jobs during this period, reflecting a 0.5 percent decline from earlier reports.