The number of Americans filing new claims for unemployment benefits rose more than expected last week as labor market conditions gradually recovered.
Initial claims for state jobless benefits rose by 9,000 to a weekly adjusted 221,000 for the week ended March 30, the Labor Department reported on Thursday. Economists polled by Reuters had forecast 214,000 claims in the latest week.
Claims have fluctuated between 212,000 and 210,000 throughout March. There were 1.36 job openings for every unemployed person in February compared with 1.43 in January, according to government data reported this week.
Labor shortages persist in industries such as construction. Although the number of layoffs rose to a 14-month high in March, job losses were seen as unchanged compared to the same period last year.
Labor market resilience remains strong in the economy, with GDP increasing at an annual rate of 3.4% in the fourth quarter. Estimated growth for the first quarter is as much as 2.8%. That strengthening, along with still high inflation, may cause the Fed to delay its much-anticipated interest rate cuts this year.
Federal Reserve Chairman Jerome Powell reiterated on Wednesday that the US central bank has time to discuss its first interest rate cut, as a signal of economic stability and high inflation.
Since March 2022, Federal Banking has increased the policy rate by 525 basis points to the current range of 5.25%-5.50%.
The number of people receiving benefits after the initial week of aid, a proxy for hiring, fell by 19,000 to 1.791 million during the week ended March 23, based on claims reports.
The claims data did not affect the March jobs report, which is scheduled for release on Friday. Nonfarm payrolls likely rose by 200,000 workers last month after rising by 275,000 in February, according to a Reuters poll.
The unemployment rate is forecast to be unchanged at 3.9%.
