U.S. initial jobless claims rise in mid-May, but stay close to recovery lows

U.S. initial jobless claims rose higher, but continue to be close to recovery lows. The jobless claims came in above expectations in the week ended 18 May, rising 11k to 234k from a revised 223k previously. Consensus expectations were a largely unchanged reading.

The four-week average in initial claims also rose higher to 220k from 214k a week earlier, but the series continues to be close to its recovery-level lows, stated Barclays in a research report. Meanwhile, continuing claims for the week ended 12 May rose to 1.741 million from 1.712 million a week earlier.

However, in spite of the week-on-week rise, continuing claims are well below their April survey week value of 1.834 million and pain a healthy picture for May employment. The insured jobless rate remained stable at 1.2 percent for the second straight week. Overall, the jobless claims data indicate towards a labor market with historically low rates of separation, added Barclays.

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