U.S. initial unemployment claims 218,000…well below expectations

JOON HYOUNG LEE

Summary

Last week, the U.S.'s initial unemployment claims were 218,000, falling well below market expectations.
Bloomberg said the figure was the lowest since mid-July this year and reported that companies remain reluctant to lay off employees.
Experts are watching employment indicators such as unemployment claims, paying attention to their impact on the labor market and corporate decision-making.

Last week, initial unemployment claims in the United States came in well below market expectations.

The U.S. Department of Labor said on the 25th (local time) that initial unemployment claims last week totaled 218,000. That was 15,000 fewer than the expert forecast (233,000). Compared with the previous week's revised figure (232,000), it was 14,000 fewer. Bloomberg said, "(Last week's figure) is the lowest since mid-July this year," adding that "the labor market has cooled, but layoffs have been relatively limited."

Continuing unemployment claims, for those filing for unemployment benefits for two consecutive weeks, totaled 1,926,000. That was 2,000 fewer than the previous week's revised figure (1,928,000). It was 4,000 fewer than the market estimate (1,930,000).

The number of new unemployment benefit claims in the United States fell to the lowest level since mid-July, which indicates that companies remain reluctant to lay off employees.

Initial unemployment claims are an indicator of overheating in the U.S. labor market. An increase in unemployment claims can be interpreted as a sign that an overheated labor market is cooling.

Experts are watching employment indicators such as unemployment claims to understand the impact of U.S. President Donald Trump's aggressive tariff policies on corporate decision-making.

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