The numbers: The number of Americans applying for unemployment benefits have topped 200,000 for nine weeks in a row, based on a change in how the government adjusts for seasonal swings in hiring.
The newly revised claims data suggest the labor market has softened more than previously believed.
In the seven days ended April 1, new jobless claims fell to 228,000 from a revised 246,000 in the prior week.
Previously, the government had estimated just 198,000 new claims in the last week in March.
The large 48,000 upward revision is one of many such instances in the jobless claims data going back several years.
Changes to the formula for seasonal adjustments now show jobless claims to be significantly higher early in 2023 than previously reported. That might reflect as flurry of corporate layoffs that had not shown up in the data before.
The number of people applying for unemployment benefits is one of the best barometers of whether the economy is getting better or worse. While new unemployment filings are still quite low, they’ve showed a marked increase since the end of February.
Big picture: Wall Street is watching jobless benefits closely because it’s one of the first indicators to emit warning signs when the U.S. is headed toward recession.
The still-low level of claims suggests the economy is outside the danger zone. Yet rising interest rates, high inflation and more stress on the U.S. financial system threaten to undermine growth and spawn more layoffs.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Thursday trades.
This post was originally published on Market Watch
