On Thursday, the Labor Department said that the initial claims for state unemployment benefits dropped 10,000 to seasonally adjusted 245,000 for the week ended June 3rd, missing previous estimate of declining to 240,000 in the latest week.
The four-week moving average of claims, which was less-volatile and considered to be a better measure of the trend of labor market, increased 2,250 to 242,000 last week.
Unemployment claims now have been below 300,000, which is a threshold related to a healthy labor market, for 118 straight weeks. The jobless rate was 4.3%, which was the lowest point in 16 years.
In the prior week, claims rose by 20,000, mainly due to the increase in California, Tennessee, Kansas, and Missouri, and some of the increase was related to summer breaks in school.
In addition, the people who are receiving jobless aid was nearly 1.92 million, which dropped around 10% from that of last year. The four-week average number of Americans receiving jobless aid reached 1.91 million, which was the lowest point since January 1974.
“There is no sign of a pickup in the rate of layoffs. Against this backdrop of high job openings, firms appear to be holding on to their workers,” said John Ryding, the chief economist at RDQ Economics.