US Initial jobless claims 229K vs 219K estimate. Continuing Claims 1.795M vs 1.780M est.

• Prior week Initial claims 225K (Largest since the first week of February)
• Prior week for continuing claims 1.777 million revised to 1.771M
• initial jobless claims 229K vs 219K estimate
• The 4-week moving average was 219,000, an increase of 4,250
  from the previous week’s unrevised average of 214,750
• Continuing claims 1.795M versus 1.780 million estimate. Prior week revised to 1.771M from 1.777M
• The 4-week moving average was 1,780,500, an increase
  of 4,750 from the previous week’s revised average. The previous week’s average was revised down by 1,500 from
  1,777,250 to 1,775,750

For two weeks in a row, the initial claims data has come in higher than expectations employment a deterioration of labor conditions. However, the price remains within the range going back to October 2024 (see chart below).

What is the weekly employment claims data?

For background, the weekly US jobless claims reports are released by the United States Department of Labor every Thursday morning and are one of the fastest indicators of labor market conditions in the United States. The report includes two key measures: Initial Claims and Continuing Claims. Initial Claims track the number of people filing for unemployment benefits for the first time during the previous week. In simple terms, it measures how many workers were newly laid off and applied for assistance. When initial claims stay low, it usually signals that employers are keeping workers and the job market remains healthy. Rising claims can be an early warning sign that layoffs are increasing and economic growth may be slowing.

Continuing Claims measure the number of people who remain on unemployment benefits after their initial filing. This helps show whether unemployed workers are finding new jobs quickly or struggling to get rehired. If continuing claims rise, it often suggests hiring conditions are becoming more difficult and people are remaining unemployed longer. If they decline, it typically points to improving job opportunities and stronger labor demand. Together, the two reports provide investors, economists, businesses, and the Federal Reserve with an important real-time look at the strength of the US labor market and broader economy.

The NASDAQ was up 200 points ahead of the data release. The S&P was up 31 points

This article was written by Greg Michalowski at investinglive.com.