US jobless claims remain at low level
WASHINGTON: The number of Americans filing new claims for unemployment benefits was unchanged at a low level last week, pointing to continued labour market strength.
labour market resilience, which is driving the economy, together with elevated inflation have led financial markets and some economists to expect that the Federal Reserve could delay cuting interest rates until September. A few economists doubt that the US central bank will lower borrowing costs this year. “Overall, layoffs remain low. We expect a continuation of the current trend, with a further adjustment in the labour market coming from a moderation in hiring rather than a surge in firings,” said Rubeela Farooqi, chief US economist at High Frequency Economics.
Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 212,000 for the week ended April 13, the US labour Department said on Thursday.
Economists polled by Reuters had forecast 215,000 claims in the latest week. Claims have been bouncing around in a 194,000-225,000 range this year.
Unadjusted claims declined 6,756 to 208,509 last week. Filings in California jumped by 3,063. There were also notable increases in claims in Connecticut, Georgia and Oregon.
These were more than offset by a decline of 4,551 in filings in New Jersey. Claims in the state had jumped in the prior week, a move that was blamed on layoffs in the accommodation and food services, transportation and warehousing, and public administration industries. There were also significant decreases in filings in Minnesota, Ohio, Pennsylvania and Wisconsin.
Fed Chair Jerome Powell backed away on Tuesday from providing any guidance on when rates might be cut, saying instead that monetary policy needed to be restrictive for longer.