Applications for US Unemployment Benefits Rise to 10-Week High[0]
US jobless claims rose by 21,000 to 211,000 last week, according to the Labor Department.[1] This marked the highest level of initial unemployment claims in 10 weeks, surpassing analysts’ expectations of only a small uptick to 195,000. Continuing jobless claims, representing the number of people already receiving benefits, also rose by 69,000 to 1.72 million in the week ending February 25, the biggest jump since November 2021.[2]
The Labor Department’s latest economic report also showed that the advance seasonally adjusted insured unemployment rate was 1.2% for the week ending March 4, unchanged from the previous week’s unrevised rate.[3] The four-week moving average was 196.5K, a decrease of 750 from the prior week’s revised average of 197.25K.[3]
However, US unemployment claims dropped again in the week ending March 11, falling by 20,000 to 192,000.[4] This was better than the median estimate of 205,000 applications. The four-week moving average decreased to 1,676,500, a decrease of 1,750.[5]
The Federal Reserve’s December meeting projections show that unemployment is expected to rise to 4.5% by the end of next year, up from the current rate of 3.5%.[0] Fed Chair Jerome Powell has also indicated that the central bank could hike interest rates at a faster pace should economic data continue to come in strong.[6] However, no decisions have been made yet for the upcoming policy meeting.[6]
0. “Jobless claims rise sharply to highest level since December” Fox Business, 9 Mar. 2023, https://www.foxbusiness.com/economy/jobless-claims-rise-sharply-highest-level-december
1. “U.S. jobless claims hit 10-week high of 211,000 By Investing.com” Investing.com, 9 Mar. 2023, https://www.investing.com/news/economic-indicators/us-jobless-claims-hit-10week-high-of-211000-3026300
2. “Jobless claims rise more than expected in past week” Seeking Alpha, 9 Mar. 2023, https://seekingalpha.com/news/3945927-jobless-claims-rise-more-than-expected-in-past-week
3. “US: Weekly Initial Jobless Claims decline to 192K vs. 205K expected” FXStreet, 16 Mar. 2023, https://www.fxstreet.com/news/us-weekly-initial-jobless-claims-decline-to-192k-vs-205k-expected-202303161235
4. “New York City unemployment claims drop” Crain’s New York Business, 16 Mar. 2023, https://www.crainsnewyork.com/economy/new-york-city-unemployment-claims-drop
5. “U.S. weekly jobless claims drop to 192000, gold price steady” Kitco NEWS, 16 Mar. 2023, https://www.kitco.com/news/2023-03-16/U-S-weekly-jobless-claims-drop-to-192-000-gold-price-steady.html
6. “US jobless claims jump to 211,000, led by New York, California, shows data” Business Standard, 9 Mar. 2023, https://www.business-standard.com/article/international/us-jobless-claims-jump-to-211-000-led-by-new-york-california-shows-data-123030901049_1.html