Claims for unemployment benefits hit 228,000 in the week that ended on April 1 and the previous week’s claims were revised up sharply, a sign that the Federal Reserve’s monetary tightening may be beginning to soften demand for labor.
Last week’s claims would have been the highest of the year, except that the prior week’s claims were revised up from 198,000 to 246,000. That makes the April 1 claims week the second highest of the year.
This was more than expected. Economists had forecast claims would rise to 201,000 from the preliminary estimate for the prior week. Claims had been reported as below 200,000 for most of this year. After the revisions to the way the Department of Labor makes season adjustments, claims now appear to have been above 200,000 for most of the year.
Continuing claims, which get reported with a one-week delay, rose by just 6,000 to 1,823,000, a low number by historical standards. This is an indication that many workers are quickly finding new work after being laid off.
Claims can be volatile week-to-week. The four-week moving average of initial claims, which many economists view as a better guide to underlying trends in the labor market, hit 237,750, a decrease of 4,250 from the previous week’s revised average. The previous week’s average was revised up by 43,750 from 198,250 to 242,000.
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