Jobless claims for the recent reporting week was a tad above the consensus, although the level remained largely aligned with the recent trend, a Labor Department report published on Thursday showed.
Crunching the Numbers: The number of individuals claiming unemployment benefits for the first time rose to 214,000 from 208,000 in the week ended April 18. Economists had expected claims to increase to 211,000 from the initially reported 207,000 for the previous week.
The four-week average, which smooths variations, came in at 210,750, up from the previous week’s revised average of 210,000. The average for the previous week was originally reported as 209,750.
Jobless Claims (Seasonally Adjusted)
Source: DOL
Continuing claims, also referred to as insured unemployment, were at 1.821 million for the week ended April 11, up 12,000 from the previous week’s downwardly revised level of 1.809 million.
This measure refers to the number of people who have already filed an initial claim and who have experienced a week of unemployment and then filed a continued claim to claim benefits for that week of unemployment.
Read-Across for Rates: The Federal Reserve’s rate-setting committee, the Federal Open Market Committee (FOMC), is set to meet for a two-week monetary policy meeting on April 28-29. Given the Iran war that has led to a spike in inflation, which the Fed has qualified as transitory, the central bank is likely to leave rates at the current 3.50%-3.75% level.
The central bank, while formulating monetary policy, has a dual mandate of maximum employment and steady prices. The fairly flattish trend seen in jobless claims should give the Fed leeway to stand pat on rates.
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