Tag Archives: Unemployment

U.S. jobless claims near 44-year-low as labor market tightens

Legal firm Hogan Lovells representative Nina LeClair (2nd R) talks to U.S. military veteran applicants (L) at a hiring fair for veteran job seekers and military spouses at the Verizon Center in Washington April 9, 2014. REUTERS/Gary Cameron

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell to near a 44-year-low last week, pointing to further tightening of the labor market even as economic growth appears to have remained moderate in the first quarter.

The stronger labor market combined with rising inflation could push the Federal Reserve to raise interest rates this month.

Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 223,000 for the week ended Feb. 25, the lowest level since March 1973, the Labor Department said on Thursday. Data for the prior week was revised to show 2,000 fewer applications received than previously reported.

It was the 104th straight week that claims remained below 300,000, a threshold associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller. It is now at or close to full employment, with an unemployment rate of 4.8 percent.

Economists polled by Reuters had forecast new claims for unemployment benefits dipping to 243,000 in the latest week. Financial markets are already pricing in a rate hike at the Fed’s March 14-15 policy meeting.

U.S. stock index futures rose after the data on Thursday. The U.S. dollar <.DXY> also firmed against a basket of currencies, while prices for U.S. government debt fell.

A survey from the U.S. central bank on Wednesday showed the labor market remained tight in early 2017, with some of the Fed’s districts reporting “widening” labor shortages.

The government reported on Wednesday that the personal consumption expenditures (PCE) price index jumped 1.9 percent in the 12 months through January, the biggest gain since October 2012. The PCE price index increased 1.6 percent in December.

The core PCE, the Fed’s preferred inflation measure, increased 1.7 percent, still below its 2 percent target.

TEPID GROWTH

A Labor Department analyst said there were no special factors influencing last week’s claims data. Only claims for Oklahoma were estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 6,250 to 234,250 last week, the lowest reading since April 1973.

Data this week showed tepid growth in consumer spending in January, weak equipment and construction spending, and a wider goods trade deficit, suggesting the economy struggled to gain momentum early in the first quarter after slowing in the final three months of 2016.

The Atlanta Fed is forecasting first-quarter gross domestic product rising at a 1.8 percent annualized rate. The economy grew at a 1.9 percent pace in the fourth quarter.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid increased 3,000 to 2.07 million in the week ended Feb. 18. The four-week average of the so-called continuing claims edged up 750 to 2.07 million.

The continuing claims data covered the survey week for February’s unemployment rate. The four-week moving average of claims fell 21,500 between the January and February survey periods, suggesting an improvement in the jobless rate.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Jobless claims up, four-week average lowest since 1973

FILE PHOTO: Job seekers apply for the 300 available positions at a new Target retail store in San Francisco, California August 9, 2012. REUTERS/Robert Galbraith/File Photo

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits rose slightly more than expected last week, but the four-week average of claims fell to its lowest level since 1973, pointing to strengthening labor market conditions.

Initial claims for state unemployment benefits increased 6,000 to a seasonally adjusted 244,000 for the week ended Feb. 18, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 fewer applications received than previously reported.

It was the 103th straight week that claims remained below 300,000, a threshold associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller. The labor market is at or close to full employment, with the unemployment rate at 4.8 percent.

Economists polled by Reuters had forecast new claims for unemployment benefits rising to 241,000 in the latest week.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 4,000 to 241,000 last week, the lowest reading since July 1973.

U.S. financial markets were little moved by the data.

Minutes of the Federal Reserve’s Jan. 31-Feb monetary policy meeting published on Wednesday showed that many policymakers believed another interest rate hike might be appropriate “fairly soon” if labor market and inflation data meet or beat expectations.

The U.S. central bank raised its benchmark overnight interest rate last December. It has forecast three rate increases this year.

A Labor Department analyst said there were no special factors influencing last week’s claims data. Claims for Wyoming, Virginia and Hawaii were estimated.

Last week’s claims report covered the survey period for the Labor Department’s nonfarm payrolls data for February. The four-week average of claims fell 6,500 between the January and February payrolls survey weeks. This suggests another month of strong job gains after payrolls increased 227,000 in January.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid fell 17,000 to 2.06 million in the week ended Feb. 11. The four-week average of the so-called continuing claims declined 10,750 to 2.07 million.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. weekly jobless claims rise less than expected

leaflet at job fair

WASHINGTON – The number of Americans filing for unemployment benefits increased less than expected last week, a sign that the labor market was continuing to tighten.

Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 239,000 for the week ended Feb. 11, the Labor Department said on Thursday.

Data for the prior week was unrevised.

Claims have been below 300,000, a threshold associated with a strong labor market, for 102 consecutive weeks.

That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is at or close to full employment, with the unemployment rate at 4.8 percent.

Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 245,000 in the latest week.

A Labor Department analyst said there were no special factors influencing last week’s data and no states had been estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, edged up 500 to 245,250 last week.

The claims report also showed the number of people still receiving benefits after an initial week of aid slipped 3,000 to 2.08 million in the week ended Feb. 4.

The four-week average of the so-called continuing claims rose 4,250 to 2.08 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

 

U.S. jobless claims drop to near 43-year low

Applicants fill out forms at job fair

WASHINGTON, Feb 9 (Reuters) – The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, amid a further tightening of the labor market that could eventually spur faster wage growth.

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 234,000 for the week ended Feb. 4, the Labor Department said on Thursday. That left claims just shy of the 43-year low of 233,000 touched in early November.

Claims have now remained below 300,000, a threshold associated with a strong labor market, for 101 straight weeks.

That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is at or close to full employment, with the unemployment rate at 4.8 percent. It hit a nine-year low of 4.6 percent in November.

Further tightening in labor market conditions could boost wage growth, which has remained stubbornly sluggish despite anecdotal evidence of more companies struggling to find qualified workers.

Lackluster wage growth, if sustained, could hurt consumer spending and crimp economic growth. Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 250,000 in the latest week.

A Labor Department analyst said there were no special factors influencing last week’s data and no states had been estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,750 to 244,250 last week, the lowest level since November 1973.

The claims report also showed the number of people still receiving benefits after an initial week of aid increased 15,000 to 2.08 million in the week ended Jan. 28. The four-week average of the so-called continuing claims fell 3,750 to 2.08 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters

Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))

Beset by economic, political woes, Nigerians protest for change

nigerians protesting

By Angela Ukomadu

LAGOS (Reuters) – Hundreds of Nigerians called for a change of government on Monday as they marched through the streets of Lagos, reflecting mounting public anger over a sputtering economy and political tensions blamed on an absentee president.

In a rare show of public dissent against the administration of President Muhammadu Buhari, more than 500 demonstrators halted traffic in the commercial capital, flanked by a heavy police escort as a truck blasted out protest songs.

Buhari has been in Britain since mid-January for treatment for an unspecified medical condition and, with no indication of when he might return, many Nigerians suspect his health is worse than officials admit.

The country is also mired in its first recession in 25 years and high inflation is driving up prices of basic goods.

“Unemployed people are hungry and angry,” read one Lagos demonstrator’s sign, against a backbeat of anthems by Afrobeat superstar Fela Kuti, a fearless critic of Nigeria’s often brutal and corrupt military rule until his death in 1997.

“Government of the rich, for the rich, making rules for the poor,” chanted other protesters.

Buhari, whose age is officially given as 74, took office in 2015 on pledges to diversify the economy away from oil, fight corruption and end an Islamic insurgency by Boko Haram that broke out in the northeast in 2009.

But critics say he has made little progress, with Nigeria still heavily dependent on crude exports whose price has halved since 2014.

The still active insurgency has killed more than 15,000 people and led to a humanitarian crisis has left 1.8 million Nigerians at risk of starvation and turned millions more into refugees.

With Buhari’s hold on power looking increasingly uncertain, some fear a rerun of the unstable three-month transition triggered when President Yar’Adua fell ill before dying, after which his vice president Goodluck Jonathan was sworn in in 2010.

Like Yar’Adua, Buhari is a Muslim from the north, and like Jonathan, the current president’s deputy Yemi Osinbajo is a southern Christian.

Traditionally the two religious groups have taken turns to hold the presidency, but that accord was unbalanced by the death of Yar’Adua before his first four-year term ended. Olusegun Obasanjo, his Christian predecessor, held office for the maximum eight years, while Jonathan was in power for five.

Ethnically-charged violence has swept Nigeria’s heartland, where hundreds have died in clashes between Muslim herders and mainly Christian farmers, and militants continue to operate in the oil-rich Delta region in the southeast.

(Corrects paragraph 10 to show transition was during Yar’Adua’s illness)

(Reporting by Angela Ukomadu, Seun Sanni and Nneka Chile in Lagos; Additional reporting by Abraham Terngu and Afolabi Sotunde in Abuja; Writing by Paul Carsten; editing by John Stonestreet)

U.S. jobless claims rise, labor market still tightening

Applicants fill out applications for jobs

WASHINGTON, Jan 26 (Reuters) – The number of Americans filing for unemployment benefits rose more than expected lastcweek, but the underlying trend remained consistent withctightening labor market conditions.

Initial claims for state unemployment benefits increasedc22,000 to a seasonally adjusted 259,000 for the week ended Jan. 21, the Labor Department said on Thursday. Claims for the prior week were revised to show 3,000 more applications received than previously reported.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 99 consecutive weeks. That is the longest stretch since 1970, when the labor market was much smaller.

Last week’s data included the Martin Luther King Jr. holiday, which could have impacted on the data. Claims tend to be volatile around this time of the year because of different timings of the various holidays.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,000 to 245,500 last week, the lowest since November 1973.

Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 247,000 in the latest week. A Labor Department analyst said there were no special factors influencing last week’s data and no states had been estimated.

The labor market is viewed as being at or close to full employment, with the unemployment rate near a nine-year low of 4.7 percent. With the labor market tightening, wage growth is picking up, which should provide a boost to the economy through strong consumer spending and a continued housing market recovery.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid increased 41,000 to 2.1 million in the week ended Jan. 14.

The four-week average of the so-called continuing claims fell 1,250 to 2.1 million. The continuing claims data covered the survey week for January’s unemployment rate.

The four-week average of claims increased 49,000 between the December and January survey weeks, suggesting little change in the unemployment rate this month.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters

Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))

Weekly jobless claims rise; import prices push higher

Job applicants listen to presentation for job opening at job fair

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits rose less than expected last week, pointing to a tightening labor market that is starting to spur faster wage growth.

Other data on Thursday showed import prices posting their largest gain in nearly five years in the 12 months through December, suggesting that inflation could soon push higher. Import prices are being driven by rising oil prices, but a strong dollar could limit some of the impact on inflation.

Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 247,000 for the week ended Jan. 7, the Labor Department said. It was the 97th straight week that jobless claims remained below 300,000, a threshold associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller.

“Jobless claims remain in a very constructive range and are still evidence of an environment in which turnover is low and employers are generally content to maintain and expand their payrolls,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.

Economists had forecast first-time applications for jobless benefits rising to 255,000 in the latest week.

Jobless claims data tends to be volatile around the holiday season. The four-week moving average, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 1,750 to 256,500 last week.

The number of Americans still receiving jobless benefits after an initial week of aid fell 29,000 to 2.09 million in the week ended Dec. 31. That was the first decline in the so-called continuing claims since November.

U.S. financial markets were little moved by the data amid disappointment over the lack of details regarding president-elect Donald Trump’s economic policy on Wednesday during his first press conference since his Nov. 8 election victory.

Stocks on Wall Street were trading lower, while prices for U.S. government debt rose. The dollar fell against a basket of currencies also as minutes from the European Central Bank’s last meeting revealed a few policymakers had not backed an extension of the ECB’s bond buying program.

During his election campaign Trump pledged to cut taxes, increase spending on infrastructure and relax regulations. While he has offered few details on these election promises, economists are hoping that the proposed fiscal stimulus would boost economic growth this year.

The stimulus would come against the backdrop of a labor market that is at or near full employment, with the unemployment rate near a nine-year low of 4.7 percent.

With tightening labor market conditions starting to push up wage growth, that could stoke inflation pressures and prompt the Federal Reserve to raise interest rates at a faster pace than currently envisaged.

The Fed raised its benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent. The U.S. central bank has forecast three rate hikes for this year. Average hourly earnings increased 2.9 percent in the 12 months through December, the largest gain since June 2009.

In a second report, the Labor Department said import prices increased 0.4 percent last month as the cost of petroleum products surged 7.9 percent. Import prices slipped 0.2 percent in November.

In the 12 months through December, import prices jumped 1.8 percent, the largest gain since March 2012, after edging up 0.1 percent in the 12 months through November.

Import prices are rising as the drag from lower oil prices fades. Oil prices have risen above $50 per barrel.

Import prices excluding petroleum, however, fell 0.2 percent in December after being unchanged the prior month. This decline in underlying import prices likely reflects sustained dollar strength. Prices of imported automobiles, consumer and capital goods fell last month.

The dollar rose 4.4 percent against the currencies of the United States’ main trading partners last year, with most of the gains coming in the wake of Trump’s victory.

“While the drag on import price inflation stemming from energy is fading, dollar headwinds have resurfaced,” said Sarah House an economist at Wells Fargo Securities in Charlotte, North Carolina.

“We expect the renewed strength in the dollar to remain a challenge for import price reflation in the coming months, but the rebound in energy prices should more than offset any drag.”

(Reporting by Lucia Mutikani; Editing by Andrea Ricci and Chizu Nomiyama)

Jobless claims fall to near 43-year low

Job seekers

WASHINGTON, Jan 5 (Reuters) – The number of Americans filing for unemployment benefits fell to near a 43 year-low last week, pointing to further tightening in the labor market.

Initial claims for state unemployment benefits dropped 28,000 to a seasonally adjusted 235,000 for the week ended Dec. 31, the Labor Department said on Thursday. That was close to the 233,000 touched in mid-November, which was the lowest level since November 1973.

Claims for the prior week were revised to show 2,000 fewer applications received than previously reported. But with claims data for six states and one territory estimated because of the New Year’s holiday, last week’s drop likely exaggerates the labor market’s strength.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 5,750 to 256,750 last week.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 96 consecutive weeks. That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is considered to be at or near full employment, with the jobless rate at a nine-year low of 4.6 percent. Tightening labor market conditions and gradually firming inflation allowed the Federal Reserve to raise its benchmark overnight interest rate last month by 25 basis points to a range of 0.50 percent to 0.75 percent.

While the U.S. central bank forecast three rate hikes for 2017, minutes of the Dec. 13-14 policy meeting released on Wednesday suggested that the pace of increases would largely be determined by the labor market and fiscal policy.

Economists polled by Reuters had forecast first-time applications for jobless benefits falling to 260,000 in the latest week. Claims briefly pushed higher last month and in November, but economists blamed the gyrations on difficulties adjusting the data around moving holidays.

A Labor Department analyst said there were no special factors influencing last week’s data. That data has no bearing on December’s employment report, which is scheduled for release on Friday, as it falls outside the survey period.

According to a Reuters survey of economists, nonfarm payrolls likely increased by 178,000 jobs in December after the same gain in November.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid rose 16,000 to 2.11 million in the week ended Dec. 24. The four-week average of the so-called continuing claims increased 26,250 to 2.07 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. jobless claims drop from five-month high

help wanted sign in Colorado

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell from a five-month high last week, pointing to labor strength that underscores the economy’s sustained momentum.

A tight labor market together with signs of a strengthening economy and steadily rising inflation will likely push the Federal Reserve to hike interest rates next week.

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 258,000 for the week ended Dec. 3, the Labor Department said on Thursday. Claims for the prior week were unrevised.

It was the 92nd straight week that claims were below 300,000, a threshold associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller.

U.S. financial markets were largely unmoved by the data as investors focused on the European Central Bank’s unexpected decision to cut its asset purchases starting in April.

Prices for U.S. government debt were trading lower, while U.S. stock index futures were higher. The U.S. dollar was stronger against a basket of currencies.

Last week’s drop in first-time applications for jobless benefits was in line with economists’ expectations. Claims hit a 43-year low in mid-November.

Economists had dismissed the recent back-to-back increases in filings, which had pushed claims to a five-month high, as an aberration. Claims tend to be volatile around this time of the year because of different timings of the Thanksgiving holiday.

A Labor Department analyst said there were no special factors influencing last week’s data and that no states had been estimated. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 252,500 last week.

The labor market is near full employment, with the government reporting last week that the unemployment rate fell to a nine-year low of 4.6 percent in November amid solid increases in nonfarm payrolls.

The Fed’s policy-setting committee meets next Tuesday and Wednesday. Economists expect the U.S. central bank to increase borrowing costs by at least 25 basis points at that meeting. The Fed raised its benchmark overnight interest rate last December for the first time in nearly a decade.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid fell 79,000 to 2.01 million in the week ended Nov. 26. That followed two straight weekly increases.

The four-week average of the so-called continuing claims slipped 9,500 to 2.03 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. jobless claims decline from five-month high

help wanted sign in Colorado

WASHINGTON, (Reuters) – The number of Americans filing for unemployment benefits fell from a five-month high last week, pointing to labor strength that underscores the economy’s sustained momentum.

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 258,000 for the week ended Dec. 3, the Labor Department said on Thursday. Claims for the prior week were unrevised.

It was the 92nd straight week that claims were below 300,000, a threshold which is associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller.

Economists polled by Reuters had forecast first-time applications for jobless benefits falling to 258,000 in the latest week. Claims hit a 43-year low in mid-November.

Economists had dismissed the recent back-to-back increases in filings, which had pushed claims to a five-month high, as an aberration. Claims tend to be volatile around this time of the year because of different timings of the Thanksgiving holiday.

A Labor Department analyst said there were no special factors influencing last week’s data and that no states had been estimated. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 252,500 last week.

The labor market is near full employment, with the government reporting last week that the unemployment rate fell to a nine-year low of 4.6 percent in November amid solid increases in nonfarm payrolls.

A tight labor market together with signs of a strengthening economy and steadily rising inflation will likely push the

Federal Reserve to hike interest rates at its Dec. 13-14 policy meeting. The U.S. central bank raised its benchmark overnight interest rate last December for the first time in nearly a decade.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid fell 79,000 to 2.01 million in the week ended Nov. 26. That followed two straight weekly increases.

The four-week average of the so-called continuing claims slipped 9,500 to 2.03 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)