their names: The number of Americans applying for unemployment benefits in early March hit a 10-week high of 211,000, but much of the increase was tied to school-related filings in New York.
New claims for benefits in the United States rose by 21,000 from 190,000 the previous week, the government said on Thursday. Figures are seasonally adjusted.
It is the first time in eight weeks that claims have exceeded the 200,000 mark.
The biggest increase has been in New York, where school workers are allowed by contract to claim benefits during winter and spring break. Gross or actual jobless claims in New York rose to 30,241 from 16,363 the previous week.
California also recorded a considerable increase, perhaps a sign that the recent wave of layoffs at large companies is starting to cool the American labor market. A number of big tech companies have announced job cuts since last fall.
The number of people applying for unemployment benefits is one of the best barometers of whether the economy is improving or deteriorating. However, new jobless claims remain close to historically low levels.
Economists polled by The Wall Street Journal predicted a total of 195,000 new claims in the seven days ending March 3.
Key details: Thirty-seven of the 53 U.S. states and territories reporting jobless claims showed an increase last week. Seventeen posted a decline.
Most states, with the exception of New York and California, reported little change.
The number of people receiving unemployment benefits across the country, meanwhile, rose by 69,000 to a two-month high of 1.72 million in the week ending February 25. This number is reported with a one-week lag.
Those continuing claims are still low, but a gradual increase since last spring suggests it’s taking longer for people who lose their jobs to find a new one.
Big picture: Unemployment insurance claims are one of the first indicators to send out danger signals as the United States heads into recession.
So far, unemployment insurance claims remain remarkably low and the economy continues to create many jobs. Economists estimate that the United States created 225,000 new jobs in February.
Economists, however, expect hiring to slow and layoffs to rise later in the year as rising interest rates dampen the economy and reduce demand for workers. A number of large companies, including in technology, media and finance, have already announced job cuts.
Look forward: “Absent [New York]the number would probably still have been below 200,000,” said chief economist Stephen Stanley of Santander Capital Markets.
“Overall, initial jobless claims have remained remarkably weak despite the flurry of layoff announcements in recent months, underscoring that the labor market retains considerable momentum.”
Market reaction: Le Dow Jones Industrial Average DJIA,
and the S&P 500 SPX,
were expected to open higher in Thursday’s trading.
Wall Street is hoping for signs of cooling in the labor market, which would discourage the Federal Reserve from raising interest rates more aggressively. The Fed is raising rates to stifle inflation and reduce upward pressure on wages.
