Number of initial jobless claims in the USA increased more than expected
In the USA, the number of initial unemployment claims in the past week has significantly increased more than expected. The number of claims rose by 4,000 to 238,000, as the Labor Department in Washington reported. Economists had on average anticipated 235,000 applications.
Weekly initial claims are considered a leading indicator for the labor market. However, the number remains at a relatively low level. This Friday, the monthly jobs report of the US government will be released.
The development on the labor market plays a crucial role for the monetary policy of the US Federal Reserve (Fed). In fact, the labor market situation influences wage development. So far, the Fed has not given any signals for an imminent interest rate cut. The persistent inflation and the robust labor market are cited as reasons for the Fed's caution.
The unexpected increase in initial unemployment benefit applications last week in the USA resulted in a total of 238,000 claims, surpassing the anticipated 235,000. Despite this rise, the number of weekly unemployment benefit claims remains fairly low in the USA. If the current trend continues, the upcoming monthly jobs report might reveal changes in the employment landscape in the USA.
