Jefferies economist Thomas Simons wrote in a report that initial jobless claims data does not indicate a rapid weakening of the labor market. “The sideways movement in both initial and continuing claims over the past few months suggests that layoff activity remains limited. The ‘no hiring/no firing’ characteristic of the labor market remains firmly in place.” The latest unemployment benefits data corresponds to the reference week for the August nonfarm payrolls report, which will be released in early September. Simons noted that since the July reference week, initial claims have increased by 14,000, but the four-week moving average has actually decreased by about 5,000.
