Despite signs of cooling in the broader labor market, weekly jobless claims remain unexpectedly steady. The latest data from the Department of Labor for the week ending April 27 shows initial jobless claims holding firm at 208,000, unchanged from the prior week and defying expectations for a rise.
By the numbers:
- Initial jobless claims: Remained at 208,000, below the anticipated 212,000.
- Continuing claims: Also stayed steady at 1.77 million, the lowest in 14 weeks.
Steady amid shifts: This static number in jobless claims contrasts with recent data showing a slow but continuous drop in job openings, which have reached their lowest point in three years. This discrepancy suggests that while fewer jobs may be available, layoffs are not increasing, indicating a resilient employment sector.
The big picture: The sustained low level of jobless claims, consistent over 12 weeks, hints at an underlying stability in the labor market. This is occurring even as other economic indicators suggest a slowdown, such as the recent decrease in job openings.
Between the lines: The steadiness of jobless claims may influence Federal Reserve policies, especially as they balance concerns of an economic slowdown with the ongoing stability in employment.
Looking ahead: Tomorrow’s nonfarm report, as usual, will give us a better indicator what is happening with the labor market. While job openings are slowing, they are still well above historical norms. Combined with jobless claims holding steady there is still little evidence we are seeing any cooling of the overall labor market.