Analysts at Nomura point out that for the week ending 13 May, US initial jobless claims decreased to 232k from 236k a week earlier.
“The four-week moving average, a less volatile series, decreased to 241k from 244k. Continuing claims fell 22k to 1898k during the week ending 6 May. Both initial and continuing claims remain at historical lows, with continuing claims at their lowest since 1973.
“In particular, continuing claims have dropped notably since the beginning of the year, with the four-week moving average decreasing to 1946k in early May from 2085k in early January. This downtrend appears consistent with an uptick in the rate of transition from unemployment to employment in the monthly employment survey and a downtick in the unemployment rate. Another downtick in yesterday’s report highlights resilient improvement in labor markets.”