Jobless Claims Increase Slighly, Still At Historic Lows

Jobless claims continue to hold at historically low levels, at 274,000 in the August 8 week. The 4-week average is down 1,750 to 266,250 and is nearly 15,000 below the month-ago comparison in what is a positive indication for the August employment report.

Continuing claims, which are reported with a week's lag, rose 15,000 in data for the August 1 week to 2.273 million. The 4-week average is up 14,000 to a 2.254 million level that is about 10,000 lower than the month-ago comparison. The unemployment rate for insured employees is unchanged at a very low 1.7 percent.

The unemployment side of the labor market is very healthy and, for policy makers, is very tight, justifying perhaps a rate hike at the September FOMC.

Recent History Of This Indicator:
Jobless claims are expected to hold at rock bottom levels, at 270,000 for initial claims in the August 8th week. Data throughout this report are at or near historic lows and point to lack of slack in the labor market.