The Commerce Department reported that the first quarter growth rate for the U.S. economy was unchanged at 1.8 percent in the second of three estimates for the period, but this morning’s bigger news was elevated jobless claims that have now exceeded the important 400,000 level for seven straight weeks as reported by the Labor Department.
Initial claims for unemployment insurance rose from an upwardly revised 414,000 to 424,000 for the week ending May 21st and the four-week moving average came in at 438,500, down slightly from the week before that marked the highest level since last November. Clearly, there are changes afoot in the U.S. labor market and, after this morning’s jobless claims number came in well above expectations of about 400,000, estimates will surely be revised lower for next week’s monthly jobs report.
