U.S. jobless claims drops in mid-July, support some rebound in July employment

The initial jobless claims in the U.S. dropped in the week ended July 15. The initial jobless claims fell by 15k to 233k, against consensus expectations for a largely unchanged reading of 245k. Claims data for the earlier week were upwardly revised by 1,000 to 248k. Along with this week’s data, the four-week moving average in claims came in at 244k. This is consistent with where the four-week average has been for much of this year, noted Barclays in a research report.

The initial claims data for this week constitute the survey week for July employment because it includes the 12th of the month. Initial claims for the July survey week at 233k are 9k below June levels, while the four-week moving average at 244k is just 1k below the June survey week.

Overall, the claims data underpin some rebound in July employment due to fewer separations. Meanwhile, the continuing claims increased 28k to 1,977k for the week ended 8 July and the four-week moving average rose 9k to 1,959k. The insured jobless rate remained stable at 1.4 percent.

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