- RDQ Economics
The number of Americans applying for unemployment benefits unexpectedly increased last week, but a steep decline in layoffs in March suggested the labour market momentum remained intact. Initial claims for state unemployment benefits surged 11,000 to a seasonally adjusted 276,000 for the week ended March26, according to the Labor Department. Economists had forecast claims remaining unchanged at 265,000 in the latest week. The four-week moving average of claims, considered a better gauge of labour market trends as it strips out week-to-week volatility, rose 3,500 to 263,250 last week. Applications for unemployment benefits have now been below 300,000, a threshold associated with healthy labour market conditions, for 56 weeks, the longest stretch since 1973.
In the meantime, a report published earlier in the week showed US private companies continue to create new positions, with 200,000 jobs added this month, according to payrolls processor ADP and Moody's Analytics. A more comprehensive non-farm payrolls report from the Labor Department is due later in the day. Economists anticipate the report to show growth of 200,000 jobs, after surging 242,000 in February, with the unemployment rate remaining steady at 4.9%.
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