The number of Americans filing new jobless claims was steady at a lower level last week as the labor market remained relatively tight.
Initial claims for state jobless benefits remained unchanged at a seasonally adjusted 208,000 for the week ended April 27, the Labor Department reported on Thursday.
Economists polled by Reuters had forecast 212,000 total claims in the latest week. Claims have fluctuated in the range of 194,000 to 225,000 this year.
Although demand for labor is slowing, with job vacancies falling to a three-year low in March, layoffs remain very low as companies retain their workers after facing labor sourcing challenges during and after the Covid-19 pandemic.
On Thursday, the Federal Reserve kept the US central bank's benchmark overnight interest rate at the current range of 5.25%-5.50%, where it has been maintained since last July. Since March 2022, the Fed has raised its key policy rate by 525 basis points. Labor costs and inflation soared in the first quarter.
Fed Chairman Jerome Powell told reporters on Thursday that progress in lowering inflation has stalled. Powell described the labor market as still "quite tight," but also noted that "supply and demand conditions are moving toward better balance."
The number of people receiving benefits after the initial week of aid, a proxy for employment, was also unchanged at a seasonally adjusted 1.774 million during the week ended April 20, according to the claims report.
A separate report from global job placement firm Challenger, Gray & Christmas on Thursday showed US-based employers announced 64,789 job cuts in April, a 28% drop from March. Planned job cuts are 3.3% lower than a year ago. So far this year, companies have announced 322,043 job cuts, down 4.6% from the same period last year.
The claims data did not affect the April jobs report, which is scheduled to be published on Friday. Nonfarm payrolls are expected to have risen by 243,000 jobs in April after rising by 303,000 in March, according to a Reuters poll of economists. The unemployment rate is expected to remain unchanged at 3.8%.
