The job market remains resilient amid economic uncertainty, analysts said Thursday (May 22) after government data showed a decline in initial claims for unemployment insurance.
That number decreased by 2,000 during the week ended Saturday (May 17), the Department of Labor (DOL) said in a Thursday (May 22) press release. The total of 227,000 initial claims filed during the week was down from the previous week’s 229,000.
The four-week moving average of 231,500 was 1,000 higher than the previous week’s average of 230,500, according to the release.
The decline in initial claims was in line with forecasts, Bloomberg reported Thursday. It added that the number marked a four-week low and signaled that the job market remains healthy, with companies maintaining their current staffing levels.
Reuters reported Thursday that the economists it polled had forecast an increase in initial claims to 230,000. The report said the decline showed resilience in the labor market.
In comments supplied to the DOL and included in the Thursday press release, the state with the greatest decrease in the number of initial claims filed during the week ended May 10, Michigan, attributed the change to fewer layoffs in the manufacturing industry. The state had 5,827 fewer claims.
The only other state that saw a decrease of more than 1,000 — California, which had 1,861 fewer claims — did not submit comments.
Two states had increases of greater than 1,000 in the number of initial claims during that week. Massachusetts, which had 3,410 more claims, did not provide comment to the DOL, while Virginia, which had 1,272 more claims, attributed the rise to layoffs in manufacturing.
The DOL also reported Thursday that the insured unemployment rate was 1.2% for the week ended May 10, unchanged from the previous week.
The insured unemployment number for that week was 1,903,000, which was 36,000 higher than the previous week’s revised level of 1,867,000, per the release. The figure for the previous week was revised down by 14,000.
It was reported Wednesday (May 22) that Walmart plans to cut 1,500 corporate jobs in its technology, eCommerce fulfillment and advertising operations. In an internal memo seen by PYMNTS, Walmart executives said the retailer is reshaping some teams in an effort to “sharpen our focus.”
