US Initial Jobless Claims Drop to 187,000, Lowest Since 1969

Bloomberg reported that first-time applications for US unemployment benefits fell last week to the lowest level since 1969, signaling layoffs remain muted in a stable labor market. Initial claims fell by 22,000 to 187,000 in the week ended July 18, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 210,000 applications. Continuing claims, a proxy for the number of people receiving benefits, was little changed at 1.8 million in the previous week. The low level of claims suggests employers remain reticent to lay off workers. Bloomberg Economist Eliza Winger said the bigger-than-expected decline reflects an imperfect seasonal adjustment process, and that the data continue to reinforce signs of limited layoffs ahead of the July 28-29 FOMC meeting. Winger said elevated corporate profit margins are allowing firms to invest while retaining workers, leaving the Federal Reserve focused on the inflation side of its dual mandate. Before adjusting for seasonal factors, initial filings fell by 53,718 to 192,296. New York led the declines with a 16,954 decrease, while Michigan and California also registered large declines.