The number of people who applied last week for
new unemployment benefits fell to the lowest level since early 2008, but
it’s unclear whether the decline reflects an improvement in the U.S.
labor market or a seasonal quirk that often occurs in July.
Initial jobless claims dropped by 19,000 to a seasonally adjusted
326,000 in the week ended July 27, marking the lowest level in five and a
half years, the government said Thursday. Economists surveyed by
MarketWatch expected claims to total 345,000.
The claims data, however, often jump up and down in July because of
periodic shutdowns at auto plants for retooling and temporary layoffs
related to the end of the regular school year. These seasonal effects
are hard to adjust for because they can change markedly from one year to
the next.
Wall Street tends to give the weekly jobless claims report less sway until those seasonal effects fade later in August.
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