The US Department of Labor has reported no change in the amount of Americans filing for unemployment benefits for the week ended April 27 with 230,000 claims vs. 215-220,000 expected.
Key Takeaways
- US jobless claims came in at 230,000 last week, the same as the week before and slightly above market expectations.
- Last week saw a big uptick following three weeks of low readings, and overall the figure is expected to normalize at around 200,000.
- The current figure points to ongoing tight labor market conditions.
Claims were unchanged last week after unexpectedly surging 37,000 the week before, the largest increase since September 2017. Some of the recent volatility has been attributed to interference in work routines as a result of seasonal holidays like Easter and Passover. A workers’ strike by workers at the Stop & Shop supermarket chain also influenced the recent surge.
The Labor Department said that no states were estimated last week. There was a jump in unadjusted claims in New York, likely due to public school spring break.
The labor market continues to show signs of strength, with nonfarm payrolls adding 185,000 jobs in April after rising 196,000 the month before. Overall economic conditions continue to strengthen the case for the Federal Reserve to avoid implementing interest rate hikes for the near future, aiming for 2% inflation.
First Cut: Initial jobless claims unchanged at 230,000 in April 27, 2019 week. No reason to view the labor market as anything but stretched for resources. https://t.co/vCKNLVjnXu pic.twitter.com/4FFzYkqm62
— Whetstone Analysis LLC (@AnalysisLlc) May 2, 2019
Market Reaction
Gold has continued to trend downward following selling pressure created earlier in the day following optimistic comments made by Federal Reserve chairman Jerome Powell on Wednesday stating that the low inflation environment is temporary and not a cause for concern.
Spot gold last traded at $1,268.75/oz, down -0.99%. June gold futures last traded at $1,271.10/oz, down -1.02%.
Gold Price Chart
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