- Lael Brainard, a member of the Federal Reserve's Board of Governors
The number of Americans, who sought unemployment benefits last week, dropped, a sign that job cuts stay low as employers remain confident enough in the business outlook to keep their personnel. Initial claims for unemployment benefits, a measure of layoffs across the US, declined 8,000 to a seasonally adjusted 276,000 in the week ended May 30, the Labor Department reported. As for claimants who already receive government support, the figure for the week ending May 16, came in at 2.196 million, compared to the revised 2.226 million seen previously. Economists anticipate that the May jobs report, to be released Friday, will show that employers added a solid 227,000 jobs last month, adding to 223,000 created in April. Analysts also forecast that the unemployment rate will remain 5.4%, at the lowest level in seven years. Earlier in the week payroll processor ADP said that businesses added 201,000 jobs last month, up from 165,000 in April.
Meanwhile, a separate report showed US non-farm productivity fell more steeply than initially estimated in the first quarter, leading to an increase in labour-related production costs, a trend that could fuel inflation if sustained. Productivity dropped at a 3.1% annual rate instead of the previously reported 1.9% pace, the Labor Department said. That was the first back-to-back decline in productivity since 2006.
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