- Daniel Silver, J.P. Morgan economist
The number of Americans applying for unemployment benefits rose slightly in the week ended May 2 after falling to the lowest level in 15 years, but the level remains consistent with improving labour market. Initial jobless claims, a proxy for layoffs across the American economy, increased by 3,000 to a seasonally adjusted 265,000 last week, according to the Labor Department. The level of claims for the prior week remained unrevised at 262,000, and was the lowest since April 2000. The four-week moving average for initial claims declined by 4,250 last week to 279,500. That was also the lowest average since May 2000. The report showed the number of continuing claims for unemployment benefits dropped by 28,000 to 2.23 million in the week ended April 25. That was the lowest level since November 2000.
Investors' attention now turns to US labour market data later today, following a dismal ADP's report earlier in the week. US private employers added 169,000 jobs last month, the fewest since January 2014 and considerably below economists' expectations. Market expectations stand for a decline in the nation's jobless rate to 5.4%, as non-farm employment is seen rising by 227,000. If payroll gains fail to accelerate, that might present a concern for Federal Reserve policy makers.
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