Initial Jobless Claims Preview

The U.S. Department of Labor will be releasing the weekly initial jobless claims number at 8:30 ET. According to Bloomberg, the consensus estimate is for 276,000 new claims, with analysts estimates ranging from 260,000 to 290,000. This is a slight improvement from last week's claims number of 281,000. Initial jobless claims, unlike continued claims data which measures the number of persons claiming unemployment benefits, measure new and emerging unemployment. Initial jobless claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing trend suggests a deteriorating labor market, while a decreasing trend suggests an improving labor market. By tracking the number of jobless claims, investors can gain a sense of how tight, or how loose, the job market might be. The lower the number of initial jobless claims, the stronger the job market, and vice versa. Over the past three months, initial jobless claims seemed to have found a range, with the lowest reading of 262,000 from April 26 and the highest reading of 296,000 just a week earlier from April 19. By tracking the number of jobless claims, investors can gain a sense of how tight, or how loose, the job market might be.