FX.co ★ US Initial Jobless Claims Unexpectedly Ease

In the United States, initial jobless claims decreased by 2,000 for the week ending May 17th, reaching 227,000. This marks the lowest level in four weeks and falls below market predictions, which anticipated an increase to 230,000. This data underscores the continued resilience of the US labor market, even amidst prolonged high interest rates and business pessimism noted in key economic indicators, largely influenced by ongoing policy uncertainty. Conversely, the number of ongoing unemployment claims increased by 36,000 to 1,903,000, surpassing expectations of 1,890,000, suggesting that some individuals are facing challenges in securing suitable employment. Additionally, initial unemployment claims filed under federal government programs, scrutinized due to layoffs by the Department of Government Efficiency (DOGE), rose by 157 to a total of 595.