The Ministry of Labor reported Thursday that unemployment insurance claims increased more than expected last week, despite other signs of recovery in the job market.
The first bill for the week ending April 3 totaled 744,000, well above the expectations of 694,000 by economists surveyed by Dow Jones. The total represents an increase of 16,000 from the upward revision of 728,000 last week. The 4-week moving average rose to 723,750.
The news arrives a week after signs of a more aggressive recovery in the labor market as non-farm payrolls in March. 916,000 increase Meanwhile, the unemployment rate has dropped to 6%.
This was the largest increase in employment since August 2020, but the unemployment rate is well above the pre-pandemic low of 3.5%.
Continuing claims provided some good news on the labor side, with the total dropping from 16,000 to 3.73 million. This is the lowest level of ongoing billing since March 21, 2020, shortly after the Covid-19 pandemic occurred and companies began major furloughs in connection with the closure of the economy. Continuing claims are executed one week later than the number of weeks in the heading.
A year ago, the total was only 3.44 million, but it surged shortly thereafter due to the massive furloughs in late March and early April.
According to unadjusted data, California and New York accounted for the majority of employment growth, with increases of 38,963 and 15,714, respectively. These increases were somewhat offset by a decrease of 13,944 in Alabama and 10,502 in Ohio.
The market responded very little to the data, and equity futures and government bond yields were mixed.
Despite recent advances, the Federal Reserve Board says more progress is needed in terms of work before they can consider policy changes.
Minutes from Latest Federal Open Market Committee MeetingAnnounced Wednesday, despite the ongoing need for simple policies, showed a better outlook for the economy.
Federal Reserve Board Governor Lael Brainard told CNBC Wednesday that the economic outlook was “significantly brighter,” but there are still about nine million fewer workers than before the pandemic. Central bank officials say they want to see not only full employment, but also comprehensive benefits that transcend income, race and gender.
“In that sense, there is some distance before the results are achieved,” Brenard said.
This is breaking news.Please come back here to check for updates..
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Higher than expected weekly unemployment claims
Source link Higher than expected weekly unemployment claims