US jobless claims remain stable

US jobless claims remain stable

Initial applications for subsidies unemployment in the US they remained moderate last week, in line with the good health of the labor market.

Initial claims remained at 212,000 in the week ending April 13, according to Department of Labor data released Thursday. The median forecast from a Bloomberg survey of economists was 215,000 claims.

Continued claims, an indicator of the number of people receiving unemployment benefits, also did not change much, standing at 1.81 million in the week ending April 6.

The labor market has remained surprisingly resilient despite high interest rates. Federal Reserve Chairman Jerome Powell noted on Tuesday that the continued strength of the labor market and the lack of progress in inflation could lead policymakers to keep interest rates high for longer.

The four-week moving average for initial claims, which helps smooth out short-term fluctuations, it has remained at 214,500 for the last three weeks.

What Bloomberg Economics says.

“Initial jobless claims for the week ending April 13 – which coincides with the survey week for the month's employment report – suggest a low rate of layoffs. “The labor market continues to cool, especially in certain parts of the country, suggesting that conditions are more diverse and less optimistic than the national tally suggests.”

Unadjusted data on initial claims, which does not take into account seasonal influences, fell to 208,509. New Jersey, Wisconsin and Pennsylvania saw the biggest declines, while California rose.

In the 20 years preceding the Covid-19 pandemic, Initial weekly applications were around 345,000, and continuing applications were 2.9 million.