US Initial Jobless Claims at 231,000... Highest in 8 Months

Bloomberg Expert Forecasts Exceeded Expectations

Last week, the number of new unemployment insurance claims in the United States reached the highest level since August of last year. This is interpreted as a sign that the overheated U.S. labor market may be gradually cooling down.

According to the U.S. Department of Labor on the 9th (local time), the number of new unemployment insurance claims for the week of April 28 to May 4 was recorded at 231,000. This significantly exceeded Bloomberg experts' forecast of 212,000. It also showed a sharp increase compared to the previous week's revised figure of 209,000.

The number of new unemployment insurance claims reflects corporate layoff trends. Since mid-September last year, it has hovered around 200,000 and remained between 200,000 and 222,000 until just three months ago. However, there is also an analysis that the number of claims temporarily increased due to school workers in New York City filing unemployment claims during the spring break period from April 22 to 30.

The number of continuing unemployment insurance claims, which are filed by those claiming benefits for at least two consecutive weeks, was recorded at 1,785,000 for the week of April 21 to 27. This is an increase of 17,000 compared to the previous week.

The U.S. Federal Reserve (Fed) is monitoring related indicators as it views an overheated labor market as a potential factor that could stimulate inflation.

Meanwhile, signs of a slowdown in the labor market were also detected in the April employment report released by the U.S. Department of Labor on the 3rd. According to the report, nonfarm payrolls increased by 175,000 compared to the previous month, significantly falling short of the Dow Jones compiled experts' forecast of 240,000. The unemployment rate rose by 0.1 percentage points to 3.9%, and the weekly wage growth rate slowed to 0.2% compared to the previous month.