The U.S. Department of Labor released the latest unemployment benefits data on Thursday (5th). The number of people receiving unemployment benefits last week was 200,000, an increase of 19,000 from the previously revised 181,000, and higher than market expectations of 182,000. The biggest weekly gain since July and the highest since mid-February, nonetheless, is consistent with a tightening labor market and further wage gains.
As of the week of April 30, the number of people receiving unemployment benefits in the United States reported 200,000, higher than market expectations of 182,000, the previous value was raised from 180,000 to 181,000, and the 4-week moving average was reported at 188,000.
As of the week of April 23, the number of people receiving unemployment benefits in the United States reported 1.384 million, a decrease of 19,000 from the revised 1.403 million in the previous week, lower than the market expectation of 1.4 million, and the 4-week moving average was reported at 1.417 million .
Initial jobless claims reached 200,000 last week, in line with a tight labor market and down sharply from 6.137 million in early April 2020. Continuing claims for unemployment benefits fell to 1.384 million last week, the lowest level since January 1970.
Economists said last week’s rise in initial jobless claims was largely due to seasonally adjusted factors rather than an increase in layoffs by businesses. New York saw the largest increase in unadjusted initial jobless claims, which Stephen Stanley, chief economist at Amherst Pierpont, attributed to teachers receiving benefits during school spring break.
Initial jobless claims echoed the recently released ADP report, which pointed to a softening in the labor market in April, but economists weren’t worried.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that even in good times, some companies fail or lay off workers, and jobless claims don’t drop to zero.
Federal Reserve Chairman Powell said a few days ago that the job market was extremely tight, noting that employment increased by nearly 1.7 million in the first three months of this year, and that the unemployment rate in March was close to a near five-year low of 3.6% before the epidemic, adding that it was strong A strong job market is one reason the economy is able to cope with tighter monetary policy.
