Initial jobless claims fell by 6,000 to 216,000 in the latest week, marking their lowest level in two months. However, continuing claims – people receiving benefits beyond the first week – rose by 7,000 to 1.96 million, one of the highest readings in four years.
What’s the bottom line? Even as initial claims remain relatively low, the sustained rise in continuing claims – above 1.9 million since mid-May – signals that displaced workers are taking longer to land new jobs. This points to a cooling labor market.