Initial Claims for Unemployment Fall by 9,000 as Labor Market Remains Stable

The number of initial claims for unemployment insurance in the U.S. fell by 9,000 during the week ended Saturday (April 12), signaling a stable labor market.

The number of jobless claims dropped to 215,000, down from the previous week’s revised level of 224,000, the Department of Labor said in a Thursday (April 17) press release.

The four-week moving average declined by 2,500 and was gauged at 220,750, down from the previous week’s revised number of 223,250, according to the release.

Both the number of initial claims and the four-week moving average were the lowest in two months, Bloomberg reported Thursday.

The number of initial claims was lower than the 225,000 forecast by economists and was “consistent with a stable market,” the report said.

Economists polled by Reuters also expected to see 225,000 initial claims during the week.

Reuters said that “low layoffs have anchored the labor market,” but added that economists expect unemployment to rise in the coming months due to declines in business sentiment.

The Federal Reserve Bank of New York said Monday (April 14) that unemployment expectations — or the mean probability that the U.S. unemployment rate will be higher one year from now — jumped by 4.6 percentage points in March and reached the highest reading since the depth of the pandemic in April 2020.

The Department of Labor also reported Thursday that the number for insured unemployment increased by 41,000 during the week ended April 5. It rose to 1,885,000, up from the previous week’s revised level of 1,844,000.

The insured unemployment rate remained at 1.2%, unchanged from the previous week, according to the press release.

The states with the greatest decreases in initial claims during the week ended April 5 were Kentucky, Iowa and New York. They saw decreases of 2,955, 1,254 and 1,085, respectively, per the release.

In comments submitted to the Department of Labor, Iowa attributed its decline in initial claims to fewer layoffs in manufacturing, while New York pointed to fewer layoffs in three industries: accommodation and food services; transportation and warehousing; and information industries. Kentucky did not submit comments.

California had the largest increase in initial claims, at 5,410, and did not submit comments to the Department of Labor. Oregon, which had the second biggest increase, with 1,331 initial claims, cited layoffs in the educational services industry.