U.S. Weekly Jobless Claims Increase In Line With Estimates

(RTTNews) - A report released by the Labor Department on Thursday showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended March 21st.

The Labor Department said initial jobless claims rose to 210,000, an increase of 5,000 from the previous week's unrevised level of 205,000. The uptick came in line with economist estimates.

Jobless claims bounced back slightly after hitting their lowest level in almost two months in the previous week.

"The latest figures on initial jobless claims are consistent with our assessment that while labor-market conditions have stabilized and layoffs remain low, the US/Israel war with Iran has made the labor market more vulnerable," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

She added, "The downside risks to the labor market leave the Fed on track to lower rates twice this year with the first cut coming in June."

Meanwhile, the report said the less volatile four-week moving average edged down to 210,500, a decrease of 250 from the previous week's unrevised average of 210,750.

The Labor Department said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also fell by 32,000 to 1.819 million in the week ended March 14th.

With the decrease, continuing claims dropped to their lowest level since hitting 1.804 million in the week ended May 25, 2024.

The four-week moving average of continuing claims also slipped by 2,000 to 1.847 million, falling to the lowest level since the week ended October 5, 2024.

"Continued claims, which track initial claims over time, are also heading lower, indication that while the pace of hiring remains weak, it hasn't deteriorated," said Vanden Houten.