US weekly jobless claims edge up; mid-Atlantic factory activity slumps

[mahatmakanejeeves]

U.S. Markets

3 minute read | April 20, 2023 | 9:37 AM EDT | Last Updated a min ago

US weekly jobless claims edge up; mid-Atlantic factory activity slumps

By Lucia Mutikani

Summary
• Weekly jobless claims increase 5,000 to 245,000
• Continuing claims rise 61,000 to 1.865 million

WASHINGTON, April 20 (Reuters) - The number of Americans filing new claims for unemployment benefits increased moderately last week, suggesting the labor market was gradually slowing as the Federal Reserve's year-long interest rate hiking campaign dampens demand.

Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 245,000 for the week ended April 15, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast 240,000 claims for the latest week.

The combination of spring breaks, which temporarily left support staff at some school districts unemployed, and people who have exhausted their severance packages following a rush of layoffs in the technology sector and other areas of the economy sensitive to interest rates, could account for part of the rise in claims last week.

Unadjusted claims dropped 7,021 to 228,216 last week as a surge of 6,703 in applications in New York and an increase of 3,079 in Georgia as well as notable rises in Connecticut and Rhode Island were offset by decreases in California, Texas, Pennsylvania, Indiana and Ohio.

{snip}

[progree]

1. Continuing claims: 1,865k (Up 61k from previous week, previous week revised down 6k)

the highest level since November 27, 2021 (nearly 1 1/2 years ago)

https://www.dol.gov/ui/data.pdf

In last Thursday's report (4/13), continuing claims was reported as 1,810k
(1,810 + 61 - 6 = 1,865 v/ )

Continuing claims is what the DOL report calls insured unemployment.

Unfortunately, the graphs at the above link show considerable growth in both initial and continuing claims since October. But still these are low levels historically (and the labor force is much larger than decades ago).

As reported in the OP:

Initial claims: 245,000, up by 5,000 from the previous week. The previous week was revised up 1,000

In last Thursday's report (4/13), initial claims was reported as 239,000
(239 + 5 + 1 = 245 v/ )

[progree]

2. The housing market is in a deep recession, while manufacturing is slumping as higher borrowing costs

From the OP's link

The housing market is in a deep recession, while manufacturing is slumping as higher borrowing costs stifle demand. A separate report from the Philadelphia Fed on Thursday showed its measure of factory activity in the mid-Atlantic region plunged to the lowest level in nearly three years in April.