WASHINGTON, April 25, 2024 – The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting that job growth likely remained solid in April.
Key points:
- Initial claims for unemployment benefits fell by 5,000 to a seasonally adjusted 207,000 for the week ending April 20, the Labor Department reported Thursday. Economists had forecast 214,000 claims.
- The four-week moving average of new claims, which is a less volatile measure of labor market trends, fell by 1,250 to 213,250 from 214,500 the previous week.
- The number of people who were continuing to claim unemployment benefits after one week, a proxy for hiring, declined by 15,000 to 1.78 million during the week ending April 13.
Implications:
The unexpected decline in jobless claims is a positive sign for the US economy. It suggests that the labor market is strong and that companies are still hiring. This could help to keep inflation in check, as workers have more bargaining power for wage increases when the job market is strong.
Sources:
- U.S. Department of Labor: https://www.dol.gov/ui/data.pdf
- AP News: https://apnews.com/article/unemployment-benefits-jobless-claims-layoffs-labor-5a914fdd4256e9f84d017fbfa49f5137
- RTTNews: https://www.rttnews.com/
