Jobless Claims Rise to Four-Month High as U.S. Auto Plants Pause

Source: Bloomberg

by Victoria Stilwell
July 9, 2015 — 11:54 AM EDT

The number of Americans filing for unemployment benefits rose last week to the highest level since February, representing a pause in the pace of labor-market improvement as the nation’s automakers begin temporary plant shutdowns.

Jobless claims climbed by 15,000 to 297,000 in the period ended July 4, Labor Department data showed Thursday. The motor vehicle-producing states of Michigan and Ohio were among those reporting jumps in new applications.

Even with the increase, weekly claims have been below 300,000 for 18 straight weeks, the longest stretch since 2000 and consistent with a brighter job market. Stronger demand would probably help persuade employers to boost hiring and assure companies about the U.S. outlook in the face of weaker overseas markets.

“I’m not seeing a pop in claims data as a significant sign things are deteriorating,” said Tom Simons, a money market economist at Jefferies LLC in New York, whose forecast for 290,000 initial claims was among the closest in the Bloomberg survey. Applications are at a level that “suggests the labor market slack is continuing to decline and conditions are tightening overall.”

Read more: http://www.bloomberg.com/news/articles/2015-07-09/jobless-claims-rise-to-four-month-high-as-u-s-auto-plants-pause