US Initial Jobless Claims Signal a Struggling Labor Market

The Initial Jobless Claims report measures the number of individuals filing for jobless benefits for the first time during the past week. A lower-than-expected reading is essentially better for the U.S. job market, as more people remain in the workforce. Theoretically, less people applying for initial unemployment benefits, the better it is for the US economy. When emerging unemployment is low and less than expected, it indicates a relatively healthy economy, or in this case, a recovering economy.In its weekly report, the U.S. Department of Labor said in the week ending June 9, the advance figure for seasonally adjusted initial claims was 386,000 worse than the estimate of 375,000, which was an increase of 6,000 from the previous week's revised figure of 380,000. The 4-week moving average was 382,000, an increase of 3,500 from the previous week's revised average of 378,500.The previous week's figure was revised up to 380,000 from 377,000. Continuing Jobless Claims measures the number of unemployed individuals who continue to be eligible for unemployment benefits.In its weekly report, the U.S. Department of Labor said the advance number for seasonally adjusted insured unemployment during the week ending June 2 was 3,278,000 worse than the estimate of 3,270,000, which was a decrease of 33,000 from the preceding week's revised level of 3,311,000. The 4-week moving average was 3,281,500, a decrease of 2,500 from the preceding week's revised average of 3,284,000.The previous week's figure was revised up to 3,311,000 from 3,293,000. U.S. equity futures spiked lower after the 8:30 a.m. ET release. Currently, the Dow Jones Industrial Index futures are trading about 4 points lower.