The steep decline in weekly unemployment claims reported by the Labor Department on Thursday reversed the surge in the prior week, which had boosted them to the highest level since Oct. 30, 2021. That increase was largely blamed on an unusual jump in applications for unemployment insurance in Massachusetts.
Unadjusted claims dropped 18,605 to 215,810 last week, with filings in Massachusetts plunging by 14,042. Claims also fell considerably in Missouri and New Jersey, more than offsetting notable increases in Ohio and Illinois. Though it has shown some signs of cooling, the labor market has remained tight, with 1.6 job openings for every unemployed person in March, well above the 1.0-1.2 range that is consistent with a jobs market that is not generating too much inflation.
Claims were little changed between the April and May survey weeks. The economy created 253,000 jobs in April, with the unemployment rate falling back to a 53-year low of 3.4%.