US jobless claims in early June rise to 222,000 and exceed expectationss
US unemployment claims unexpectedly increased in early June.
Weekly jobless claims in the US rose to 220,000 in the week ending June 8, according to the US Department of Labour. That figure was higher than economists’ predictions of 216,000 unemployment claims in early June.
Early June US jobless claims part of disappointing economic news
The increase in US jobless claims suggests a slowdown in the robust US economy. The growth in unemployment claims coincides with other potentially worrying economic data like a worse-than-expected non-farm payrolls report.
What are economists saying about early June US jobless claims?
Jake McRobie, US economist with Oxford Economics, said that the lackluster economic statistics could convince the US Federal Reserve to lower interest rates.
‘Combined with increased business uncertainty from rising trade tensions and slowing domestic growth, softer inflation should prompt the Fed to ease policy by year end,’ said McRobie.
Eliza Winger, Bloomberg economic analyst, believes that the US economy is still strong despite the surge in unemployment claims.
‘Jobless claims tend to be volatile, and while the latest jump could be a signal of deteriorating labour market conditions, it is too early to draw that conclusion. The economy is slowing, but it is still growing above potential and expected to generate enough jobs to tighten the labour market further,’ said Winger.
Maria Cosma, economist at Moody’s Analytics, also contends that the latest jobless claims statistics aren't a distressing sign for the economy yet.
‘Claims have been roughly flat over the past couple of months, a potential sign that job growth is slowing. Nevertheless, jobless claims aren’t sending any warning signals just yet,’ said Cosma.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets