Last Updated: March 23, 2023 at 9:06 AM ET
First Published: Mar 23, 2023 at 8:36 am ET
The Numbers: The number of Americans applying for unemployment benefits fell to a three-week low of 191,000 last week, indicating little erosion in a strong US labor market, even as the economy faced new strains Are.
New US applications for benefits fell 1,000 from 192,000 in the prior week, the government said on Thursday. ,
The number…
Number: The number of Americans applying for unemployment benefits fell to a three-week low of 191,000 last week, indicating little erosion in a strong US labor market, even as the economy faces fresh stress. Is falling
New US applications for benefits fell 1,000 from 192,000 in the prior week, the government said on Thursday. ,
The best barometer of whether the economy is getting better or worse is the number of people applying for jobless benefits. New unemployment applications remain near historically low levels.
Economists polled by The Wall Street Journal had forecast a total of 198,000 new claims in the seven days ending March 18. The numbers are adjusted seasonally.
Main details: Twenty-eight of the 53 US states and territories showed a decrease in reported unemployment claims last week. Twenty-five posted an increase.
Most of the changes were small, except for Indiana.
One possible red flag: The number of raw or actual claims — before seasonal adjustments — was much higher last week than the same week a year ago. But there is little sign of a trend so far.
“Recently even thousands of [high-tech] “The layoffs have been almost entirely absorbed by a robust labor market, which has plenty of expansion left,” said Robert Frick, chief corporate economist at Navy Federal Credit Union.
Meanwhile, the number of people seeking unemployment benefits across the country rose by 14,000 to 1.69 million in the week ended March 11. This number is reported with an interval of one week.
These continued claims are still low, but the gradual increase since last year suggests that those who have lost their jobs are taking longer to find a new job.
big picture: Claims for jobless benefits are one of the first alarming indicators that the US is headed for a recession. It’s still not flashing a red-light, or even a yellow one, as the economy comes under more pressure.
For example, the Federal Reserve raised interest rates to nearly 16-year highs. And the failure of Silicon Valley Bank has put more strain on the US financial system.
Both of these actions could disrupt the economy in the coming months, curb hiring and potentially lead to a lower unemployment rate. If so, look at the trend of new unclaimed claims.
looking ahead: “Most companies are either still hiring or furloughing their employees and looking for other ways to cut costs,” said Joshua Shapiro, chief economist at MFR Inc.
“This is consistent with our view that layoffs will increase less dramatically than would normally occur as companies do all they can to avoid shedding workers who are incredibly difficult to recruit and retain.”
Market Feedback: The Dow Jones Industrial Average DJIA and the S&P 500 SPX were set to open higher in Thursday’s trading. The stock has been under pressure since SVB failed earlier this month.
Source: www.marketwatch.com
