Jobless claims far higher than thought, revisions show ahead of March jobs report
Zachary Halaschak
The number of new applications for unemployment benefits was at 228,000 last week, the Labor Department reported Thursday, much higher than recently reported numbers.
Rising jobless claims are a proxy for layoffs, and so higher numbers suggest the labor market is weakening.
Recent weeks' reports had shown claims running below 200,000, indicating layoffs were rare. But the Labor Department unveiled a new methodology for calculating claims Thursday that showed they are running significantly higher.
A sustained increase in claims for unemployment insurance would be a sign the unusually strong labor market might be starting to react to the Federal Reserve’s efforts to tighten monetary policy to slow economywide spending and bring down inflation. They also come as the banking system faces upheaval following the collapse of Silicon Valley Bank.
"We expect a softening in demand for workers as economic activity slows on the effects of restrictive monetary policy," wrote Rubeela Farooqi, chief U.S. economist for High Frequency Economics. "As well, a further tightening in credit conditions which weighs on lending activity is likely to affect business decisions about hiring."
Thursday's report comes a day before the much-anticipated March jobs report is released by the Bureau of Labor Statistics.
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https://www.washingtonexaminer.com/policy/economy/jobless-claims-rise-ahead-of-march-employment-report
