U.S. Labor Market Remains Strong Despite Unexpected Rise in Jobless Claims
U.S. jobless claims unexpectedly rose last week, according to the Department of Labor, with initial applications for unemployment benefits hitting 211,000, an increase of 21,000 from the previous week.[0] Continuing claims, representing the number of people already receiving benefits, were at 1,684,000 during the week ending March 4, a decrease of 29,000 from the previous week’s revised level.[1] The four-week moving average of claims, which smooths out week-to-week volatility, fell by 750 to 196,500, remaining below the 200,000 threshold for the eighth straight week.[1]
Approximately 1.9 million Americans were receiving unemployment benefits a year ago.[2] Last week’s numbers, however, show a marked decrease from earlier this year when the labor market was tighter. In January, the unemployment rate was 3.5%, and the Federal Reserve projected that it would rise to 4.5% by the end of next year.[3] This suggests that, although the number of Americans filing for unemployment benefits has increased, the labor market is still quite strong.
Overall, these numbers demonstrate that the U.S. labor market is still strong, although there is a slight uptick in unemployment claims. The four-week moving average of claims remains below the 200,000 threshold, suggesting that layoffs still remain quite low.[4] These figures should be seen as a sign of continued economic growth and resilience.
0. “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
1. “Jobless Claims Fell Last Week, Showing Still Strong Labor Market” Morningstar, 16 Mar. 2023, https://www.morningstar.com/news/dow-jones/202303166516/jobless-claims-fell-last-week-showing-still-strong-labor-market
2. “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
3. “U.S. jobless claims drop by most since July” Toledo Blade, 16 Mar. 2023, https://www.toledoblade.com/business/labor/2023/03/16/jobless-claims-drop-most-july/stories/20230316109
4. “Jobless claims tumble to 192,000 and show no sign of rising U.S. layoffs” MarketWatch, 16 Mar. 2023, https://www.marketwatch.com/story/jobless-claims-tumble-to-192-000-and-show-no-sign-of-rising-layoffs-a2a78aa2
