US Jobless Claims Fall Slightly, Labor Market Still Weak

By Mike Obel | June 21 2012 9:16 AM

First-time claims for jobless benefits in the U.S. fell by 2,000 to a seasonally adjusted 387,000 in the week ended June 16, Labor Department said Thursday, but the overall level still shows a weak labor market.

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The number of jobless claims has declined in two of the last three weeks, but applications for benefits from late April and early May remain near the 400,000 level that economists say indicates a flat labor market. The more-reliable four-week moving average rose in the week ending June 16 by 3,500 to 386,250.

This confirms the weak labor market we have. I suspect we would see a modest rebound in payrolls in June, but it would still be below 150,000. It's going to be another month of sub-par jobs data, Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, N.C., told Reuters.