US Initial Jobless Claims Tick Up To Highest Since January
Initial applications for US unemployment benefits rose last week to the highest since January, consistent with a recent uptick in the number of job cuts.
(Bloomberg) -- Initial applications for US unemployment benefits rose last week to the highest since January, consistent with a recent uptick in the number of job cuts.
Initial claims increased by 9,000 to 221,000 in the week ended March 30, according to Labor Department data released on Thursday. The median forecast in a Bloomberg survey of economists called for 214,000.
Continuing claims, a proxy for the number of people receiving unemployment benefits, decreased to 1.79 million in the week ended March 23.
Although the labor market has remained resilient in recent months, layoffs are on the rise. They reached a year-high in February in government figures released this week. And job-cut announcements by corporations are also at the highest in a year in data from Challenger, Gray & Christmas, which may result in rising joblessness in coming weeks.
The announcements last month were spread across several sectors including the US Army and technology.
“Layoffs certainly ticked up to round out the first quarter, though still below last year’s levels. Many companies appear to be reverting to a ‘do more with less’ approach,” Andy Challenger, senior vice president at the executive coaching firm, said in a report Thursday.
What Bloomberg Economics Says...
“The government was responsible for the most layoff announcements in March. So far this year, technology has led cuts, followed by financial firms, services, and transportation. The broad trend is that the labor market is cooling — and maybe even quickly.”
-Eliza Winger, economist.
To read the note, see here
Weekly claims tend to be volatile. The four-week moving average, which helps smooth short-term fluctuations, edged up to 214,250, highest since February. That’s still below levels of the years preceding the pandemic.
“Overall, the labor market remains strong although there is a gradual rebalancing of supply and demand for workers,” said Rubeela Farooqi, chief US economist at High Frequency Economics. “We expect a further adjustment to come from a moderation in hiring rather than a surge in firings going forward.”
The unadjusted data on initial claims, which doesn’t take into account seasonal influences, also rose slightly to 196,376. California and Pennsylvania led the gains, and Midwestern states including Iowa and Illinois saw large advances.
The government’s monthly employment report due Friday will provide further insight into the labor market. Economists forecast a 213,000 gain in nonfarm payrolls in March.
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--With assistance from Augusta Saraiva.
(Updates with details on government job-cut announcements)
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