US Initial Jobless Claims Fall to 199k, Productivity Beats
Initial jobless claims fell to 199,000, below expectations, while continuing claims rose slightly. Productivity gained 1.4%, double the forecast, and unit labor costs rose less than feared, easing inflation concerns.
Initial jobless claims in the US fell to 199,000 for the week ending August 1, coming in below the 205,000 forecast. Continuing claims, however, edged up to 1.801 million, slightly above the expected 1.789 million, indicating that while layoffs remain limited, unemployed workers may be facing a somewhat lengthier job search.
Separately, nonfarm productivity rose 1.4% in the second quarter, more than double the 0.6% estimate. Unit labor costs increased 1.3%, missing the 2.1% forecast, which helps alleviate concerns about wage-driven inflation. The data suggest a labor market that is still tight but with improving efficiency, potentially supporting a soft landing scenario.
Source: First Squawk