US Initial Jobless Claims Signal a Struggling Labor Market

Initial Jobless Claims measures the number of individuals filing for jobless benefits for the first time during the past week. A lower-than-expected reading is essentially better for the US job market, as more people remain in the workforce. Theoretically, less people applying for initial unemployment benefits, the better it is for the US economy. When emerging unemployment is low and less than expected, it indicates a relatively healthy economy, or in this case, a recovering economy. In its weekly report, the U.S. Department of Labor said in the week ending April 21, the advance figure for seasonally adjusted initial claims was 388,000, worse than the estimate of 375,000, which was a decrease of 1,000 from the previous week's revised figure of 389,000. The 4-week moving average was 381,750, an increase of 6,250 from the previous week's revised average of 375,500. The previous week's figure was revised up to 389,000 from 386,000. Continuing Jobless Claims measures the number of unemployed individuals who continue to be eligible for unemployment benefits. In its weekly report, the U.S. Department of Labor said the advance number for seasonally adjusted insured unemployment during the week ending April 14 was 3,315,000, worse than the estimate of 3,293,000, which was an increase of 3,000 from the preceding week's revised level of 3,312,000. The 4-week moving average was 3,311,750, a decrease of 9,750 from the preceding week's revised average of 3,321,500. The previous week's figure was revised up to 3,312,000 from 3,297,000. US equity futures saw an initial move lower after the 8:30 a.m. ET release. Currently, Dow Jones Industrial Index Futures are trading about 36 points lower in pre-market trading.