First Time Jobless Claims Edge Higher

Initial jobless claims edged higher the last two weeks of July but remain near record lows. Claims, after rising 14,000 the prior week, rose 3,000 to 269,000, lifting the 4-week average by nearly 4,000 to 260,250 which on a month-ago basis, however, remains little changed.

Continuing claims are also little changed, down 6,000 in lagging data for the July 23 week to 2.138 million with the 4-week average up 5,000 to 2.142 million. The unemployment rate for insured workers is unchanged at a very low 1.6 percent.

The Labor Department says there are no special factors in today's report though summer retooling in the auto sector could be behind the last two weeks of limited gains. Today's report won't affect expectations for tomorrow's employment report but it does underscore continued strength in the labor market.

Recent History Of This Indicator:
Initial jobless claims were very low through most of July but did move higher in the July 23 week, up 14,000 to 264,000 with the Econoday consensus calling for 265,000 in the July 30 week. Seasonal layoffs tied to auto retooling have yet to take hold which points to the risk of elevated claims levels for the balance of the summer.