Unemployment Data Suggests Gradual Cooling of Labor Market

The latest unemployment data reportedly points to a continued gradual cooling of the labor market.

During the week ended Saturday (Aug. 24), the number of initial claims for unemployment insurance decreased by 2,000, the Department of Labor (DOL) said in a Thursday (Aug. 29) press release. The previous week’s figure was revised up by 1,000.

The total of 231,000 initial claims filed during the week was down from the previous week’s revised figure of 233,000, according to the release.

The four-week moving average of 231,500 was 4,750 lower than the previous week’s revised average of 236,250, which was revised up by 250, per the release.

The total number of initial claims filed during the latest week was 1,000 lower than that expected by economists, Reuters reported Thursday. Those surveyed by the media outlet had forecast a figure of 232,000.

The data should help calm concerns about a steep downturn in the economy, as it suggests a gradual cooling of the labor market, according to the report.

It also marks a return to normalcy after the number of initial claims leaped to an 11-month high in July, the report said. That spike in claims was caused by annual, temporary shutdowns of motor vehicle plans and the impact of Hurricane Beryl.

The DOL report comes two days after The Conference Board released its Consumer Confidence Index, which showed signs of improvement and suggested economic resilience despite ongoing challenges.

While consumers’ outlook on the labor market dimmed, their views on current and future business conditions grew more positive, according to the report released Tuesday (Aug. 27).

The DOL also reported Thursday that the insured unemployment rate was 1.2% for the week ended Aug. 17, unchanged from the previous week’s rate, which was unrevised.

The insured unemployment number for that week was 1,868,000, which was 13,000 higher than the previous week’s revised figure of 1,855,000. The figure for the previous week was revised down by 8,000, per the release.

In comments supplied to the DOL, the state with the greatest decrease in the number of initial claims filed during the week ended Aug. 17, Michigan, said the change was driven by fewer layoffs across all industries. The state saw a decrease of 2,847 initial claims.

The state with the biggest increase in initial claims, Florida, pointed to layoffs in construction, manufacturing, wholesale trade and retail trade industries. Florida saw an increase of 2,153 in the number of initial claims during the week, per the release.