US: Rise in claims stands in contrast to other readings of the labor market at present – Wells Fargo


Economic data released on Thursday in the US surprised to the downside, with the weekly claims report showing worst-than-expected numbers. Analysts at Wells Fargo point out that the second consecutive increase in weekly claims to 744K and the modest increase in the four-week average stand in contrast to nearly all other reads on the labor market at present, which point to the recovery progressing.

Key Quotes: 

“Initial jobless claims rose for a second straight week, coming in at 744K. The increase over the past two weeks was enough to nudge the four-week average up for the first time since January of this year.”

“The recent rise in claims stands in contrast to almost all other readings of the labor market at present. Hiring has picked up substantially, with 916K jobs added in March. Business surveys corroborate stronger job growth, with the ISM manufacturing and services employment indices both jumping last month. Job openings according to both the BLS and Indeed.com have surpassed their pre-COVID levels. And even from households' perspective, the labor market has improved recently, with the difference between the share of consumers viewing jobs as "plentiful" versus "hard to get" in March seeing its biggest jump since June.”

“There is little to suggest that the labor market recovery is once again stalling, let alone backsliding, as recent claims figures hint. Instead, the sideways move likely reflects the usual weekly noise—made especially difficult this time of year by the variable timing of Easter—as well as ongoing issues related to backlogs, substantial churn in some industries and even fraud.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures