The number of Americans filing new claims for unemployment benefits fell more than expected last week, with filings in Massachusetts falling sharply, showing the labor market remains strong.
Initial claims for jobless benefits fell 22,000 to a seasonally adjusted 242,000 for the week ended May 13, the Labor Department reported on Thursday. Claims jumped to 264,000 in the previous week, driven by a surge in filings for unemployment insurance in Massachusetts.
The Department of Unemployment Assistance states that they are seeing an increase in fraudulent claims where people are trying to gain access to active UI accounts or file new UI claims using stolen personal information.
Economists polled by Reuters had forecast 254,000 for the latest week. Unadjusted claims for Massachusetts fell 14,042 last week.
The labor market is being watched closely for signs of pressure from the Federal Reserve's fastest interest rate hike campaign since the 1980s to tame inflation. Although it has shown some signs of slowing, the labor market remains tight, with 1.6 job openings for every unemployed person in March, well above the 1.0-1.2 range consistent with a job market not generating too much inflation.
Claims changed little 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%.
The number of people receiving benefits after the initial week of aid, a proxy for hiring, fell 8,000 to 1.799 million in the week ended May 6. So-called ongoing claims remain low by historical standards, but it may take longer for some unemployed people to find new work.
