The number of Americans who applied for unemployment benefits last week fell to 209,000, indicating that layoffs remain low and demand for workers high.
Jobless claims have remained at very low levels this year, defying predictions that the labor market would significantly soften. Since the new year, claims have ranged from 194,000 to 225,000.
The four-week moving average was 208,000, a decrease of 500 from the previous week’s revised average. This year, claims have averaged 223,000, slightly below last year’s average.
In a separate report, the Department of Labor said that the producer price index rose by 0.6 percent, or a 6.9 percent annualized rate, in February. That was twice what was expected.
The resurgence of inflation and the resilience of the labor market could force the Federal Reserve to hold off on cutting interest rates. The Fed typically cuts rates when it worries that inflation is running too low or demand for workers is slumping. By law, the Fed is directed to pursue price stability and maximum employment.
Economists polled by the Wall Street Journal had forecast new claims to total 218,000. The prior week’s claims estimate was revised down from 217,000 to 210,000.
The long-term average of weekly initial claims going back to 1967 is around 365,000. The average prior to the pandemic, when claims spiked to higher than all previous levels, is 350,000. Last year, claims averaged just over 225,000. In the year before that, they averaged 213,000.
The number of people collecting unemployment benefits in the U.S. after their initial week of claims climbed up by 17,000 to 1.81 million, slightly above their average in the past two years. The longterm average prior to the pandemic was around 2,665,000.
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