Jobless claims rise more than expected

Source: Pavlo Sukharchuk / Getty

The number of Americans filing new applications for unemployment benefits increased more than expected last week, but this likely does not indicate a significant change in labor market conditions.

Initial claims for state unemployment benefits rose to 242,000 for the week ended February 22, higher than economists’ forecasts.

This marks the highest level of weekly jobless claims since early December, indicating a developing situation in the labor market.

The layoffs of probationary federal government workers by the Trump administration have not yet impacted the unemployment compensation program.

“We will have to wait another week for the detail on precisely how many initial claims were filed nationwide by former Federal civilian employees, but the number totaled 614 in the week ending February 15, up just one — that’s not a misprint — on the previous week,” Samuel Tombs, chief US economist for Pantheon Macroeconomics, wrote in a note to investors on Thursday. “It will take another week or two for the job cuts implemented mid-month to come through fully in the claims data.”

Despite concerns about economic hardship from federal layoffs, state unemployment claims suggest no major shift in labor market conditions, allowing the Federal Reserve to maintain interest rates unchanged.

Additionally, a Conference Board survey showed consumer sentiment about job prospects has slightly declined.

Source: CNN

Jobless claims rise more than expected, highest in 3 months  was originally published on wbt.com