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Investing.com – Economists and traders await the release of employment data tomorrow, and eyes will focus on the private sector employment report, as the US economy is expected to add 239,000 jobs. Also, focus will be on the unemployment rate, which rose last month to 3.6% and is expected to remain at 3.6. % remained unchanged, but many data indicate that the rate is likely to rise.
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Layoffs…the strongest in years
US employers cut nearly 90,000 jobs in March, up about 15% compared to February, according to the report published by Challenger Gray & Christmas Inc.
It also represents an increase of 319% from the 21,387 job cuts announced in the same period last year. The rise in announced layoffs also marked the third consecutive monthly increase.
Andrew Challenger, Senior Vice President, Challenger, Gray & Christmas, Inc. said:
“Overall, more than 270,000 layoffs were announced in the first quarter, which is a 396% increase over the same period last year. It also marks the highest total for the first quarter since 2020.”
He added, “As expected, the largest job cuts were announced in the technology sector, which accounted for 38% of all cuts. Financial firms were also ranked second with 30,635 cuts.”
The report also stated that “the only years in which technology companies announced more job cuts compared to the current year were 2001, when 168,395 job cuts were announced, and 2002, when a decline of 131,294 jobs was recorded in the technology sector.” .
Meanwhile, 167,575 job cuts were related to “market/economic conditions” while another 24,285 job cuts were attributed to “cost cutting” measures, with another 22,109 job cuts linked to “closing a store, unit or department”.
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Unemployment Claims came in at 228K, higher than the consensus forecast of 200K. Especially since it recorded 198 thousand the week before last, but this reading has been revised to record now 246 thousand.
Thus, the average number of jobless claims rose in 4 weeks to 237.75 thousand, after it recorded 242 thousand the week before last.
The weekly unemployment indicator provides very timely data, identifies the amount of individuals who claimed unemployment insurance for the first time during the past week and traders see the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
ADP data for the change in non-farm private sector jobs announced that only 145 thousand jobs were added, while experts expected an addition of 200 thousand jobs.
The JOLTs job opportunities data also came to discover a decline in the available opportunities, as the data announced 9.931 million job opportunities in February, while experts expected that 10.4 million job opportunities would be available. This is down from January’s figure, which revealed 10.563 million jobs were available (after revision).
