The U.S. labor market continues to defy expectations, with initial jobless claims falling to their lowest level in over two months, according to new data from the Department of Labor.
- Initial claims dropped to 215,000 for the week ending April 12, down from 224,000 the week prior and below economists’ forecast of 225,000.
- The four-week moving average also declined to 220,000, the lowest level since mid-February. The data suggest employers are still holding on to workers, even as job growth moderates.
Continuing claims, which run a week behind, did tick higher to 1.89 million for the week ending April 2, up from 1.84 million and marking the second-highest level in the last five weeks.
- That rise was broadly in line with expectations and indicates a slight increase in the number of unemployed workers drawing benefits.
What They’re Saying: Matt Grossman of Dow Jones Newswires said the data reinforces a key labor market theme: “Steady unemployment-claims levels are a sign that even though job creation has slowed over the past year, there hasn’t been a big upswing in layoffs.”
Rate Impact: The strength in the labor market, combined with renewed concerns about a short-term inflation shock, keeps pressure off the Federal Reserve to pivot toward rate cuts anytime soon.
