U.S. Jobless Benefits Fell Last Week, Extending Stretch of Low Filings

The weekly tally of new unemployment claims has remained near its lowest levels ever for months as employers hold on to workers and try to hire more, with the gap between job openings and unemployed workers seeking jobs remaining historically large.The four-week average for claims, which smooths out volatility in the weekly figures, dipped to 206,500 last week from 207,000 the previous week.

Thursday’s report showed continuing claims, a proxy for the total number of people receiving payments from state unemployment programs, decreased to 1.31 million the week ended May 21 from 1.35 million for the week ended May 14. They remain near the lowest level since 1969. Continuing claims are reported with a one-week lag.

There were a seasonally adjusted 11.4 million job openings in April, a decrease from an upwardly revised record 11.9 million openings the prior month, the Labor Department said Wednesday. The number of times workers quit their jobs fell slightly to 4.4 million. Both are signs the labor market remains unusually tight.

Meanwhile, hiring held steady, slightly decreasing to 6.6 million hires. Separations overall, which includes quits and layoffs, also fell to 6 million in April.

Demand for workers has exceeded the number of unemployed people looking for work for the past year. During that time, employers have added more than 400,000 jobs a month to U.S. payrolls and the unemployment rate has dropped 3.6%, slightly above its prepandemic level of 3.5% and close to a 50-year low. The hot jobs market is driving up wages at a historically high rate and contributing to the highest inflation in four decades.

More slack could return to the labor market over the coming months as the Federal Reserve tries to slow demand to deal with high inflation and relieve the stress on supply chains and the labor market. The U.S. central bank raised interest rates by a half percentage point on May 4, the first half-point increase since 2000. Officials have signaled similar moves are very likely at their next two meetings, in June and July.

“I support having the policy rate at a level above neutral so that it is reducing demand for products and labor, bringing it more in line with supply and thus helping rein in inflation,” said Fed governor

Christopher Waller

in a speech on Monday.

In recent public comments, Fed Chairman

Jerome Powell

has suggested the central bank won’t slow its rate increases until it sees clear evidence that inflation is declining.

Write to Gabriel T. Rubin at [email protected]

The weekly tally of new unemployment claims has remained near its lowest levels ever for months as employers hold on to workers and try to hire more, with the gap between job openings and unemployed workers seeking jobs remaining historically large.The four-week average for claims, which smooths out volatility in the weekly figures, dipped to 206,500 last week from 207,000 the previous week.

Thursday’s report showed continuing claims, a proxy for the total number of people receiving payments from state unemployment programs, decreased to 1.31 million the week ended May 21 from 1.35 million for the week ended May 14. They remain near the lowest level since 1969. Continuing claims are reported with a one-week lag.

There were a seasonally adjusted 11.4 million job openings in April, a decrease from an upwardly revised record 11.9 million openings the prior month, the Labor Department said Wednesday. The number of times workers quit their jobs fell slightly to 4.4 million. Both are signs the labor market remains unusually tight.

Meanwhile, hiring held steady, slightly decreasing to 6.6 million hires. Separations overall, which includes quits and layoffs, also fell to 6 million in April.

Demand for workers has exceeded the number of unemployed people looking for work for the past year. During that time, employers have added more than 400,000 jobs a month to U.S. payrolls and the unemployment rate has dropped 3.6%, slightly above its prepandemic level of 3.5% and close to a 50-year low. The hot jobs market is driving up wages at a historically high rate and contributing to the highest inflation in four decades.

More slack could return to the labor market over the coming months as the Federal Reserve tries to slow demand to deal with high inflation and relieve the stress on supply chains and the labor market. The U.S. central bank raised interest rates by a half percentage point on May 4, the first half-point increase since 2000. Officials have signaled similar moves are very likely at their next two meetings, in June and July.

“I support having the policy rate at a level above neutral so that it is reducing demand for products and labor, bringing it more in line with supply and thus helping rein in inflation,” said Fed governor

Christopher Waller

in a speech on Monday.

In recent public comments, Fed Chairman

Jerome Powell

has suggested the central bank won’t slow its rate increases until it sees clear evidence that inflation is declining.

Write to Gabriel T. Rubin at [email protected]