Weekly jobless claims dip, ongoing claims remain high

Aug. 17 (UPI) -- First-time claims of joblessness in the U.S. economy fell slightly more than expected, though the outlook was balanced by an increase in the less-volatile, four-week moving average, the Labor Department reported Thursday.

The Labor Department showed initial claims over the seven-day period ending Aug. 12 came in at a seasonally adjusted 239,000, barely below market expectations and 11,000 fewer than the previous week, for which data were revised up by 500 claims.

The four-week moving average was 234,250, an increase of 2,750 from the previous period. Elsewhere, data show the number of people filing continued claims for the week ending July 29 was 1.8 million, a decline of 17,663 from the previous week but a good 400,000 more than during the similar period last year.

In what was described as a cost-cutting measure, CVS Health stores said in early August it would lay off around 5,000 employees, mostly at the corporate level. Big-box retailer Walmart, however, was upbeat, saying it expected to see total revenue increase from $152.9 billion to $161.6 billion by the same period next year.

"We're in good shape with inventory, and we like our position for the back half of the year." President and CEO Doug McMillon said.

That may be good for future job prospects, but bad for the overall economy as strong retail sales, even at discount chains, show consumers are unfazed by lingering inflationary pressures and higher lending rates.

The Federal Reserve commented Wednesday that payroll gains are robust and while job openings declined to a two-year low, they remain well above pre-pandemic levels. Consumer-level inflation, meanwhile, "declined but remained elevated in June," the Fed stated.

The Fed raised its rates again last month in an effort to stifle demand, adding it may opt for another hike if data show the economy is overheating.