U.S. Initial Jobless Claims Drop For The First Time In Three Weeks
Applications for US unemployment benefits fell for the first time in three weeks, suggesting employers are still largely holding on to their workers.
(Bloomberg) -- Applications for US unemployment benefits fell for the first time in three weeks, suggesting employers are still largely holding on to their workers.
Initial claims decreased by 9,000 to 218,000 in the week ended Feb. 3, according to Labor Department data out Thursday. The median forecast in a Bloomberg survey of economists called for 220,000.
Continuing claims, a proxy for the number of people receiving unemployment benefits, dropped to 1.87 million in the week that ended on Jan. 27.
The labor market has proved surprisingly robust in recent months, powering consumer spending. But recent high-profile job-cut announcements from companies including United Parcel Service Inc. and across the tech industry may signal slower demand for workers in the coming months.
Weekly claims tend to be volatile. The four-week moving average, which helps smooth short-term swings, increased to 212,250, the highest since late December.
The unadjusted data on initial claims, which does not take into account seasonal variations, fell by more than 31,000 to about 232,700. The drop was relatively broad-based across states, with Oregon and Ohio seeing large declines.
What Bloomberg Economics Says...
“Initial jobless claims continue to signal a relatively low rate of firing. Unadjusted data suggest claims have been following a similar pattern to last year, expect for some weather-related disruptions. Still, claims could climb in coming weeks amid a flurry of layoff news.”
- Eliza Winger, economist
For the full note, see here
Read More: US Jobless Claims Are Unreliable Indicator of Tight Job Market
--With assistance from Augusta Saraiva.
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