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If You've Not Been Paying Close Attention To Jobs Data, Get It Together

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If You've Not Been Paying Close Attention To Jobs Data, Get It Together

Many investors brush off the weekly initial jobless claims data and don't pay too much attention to it. According to Bloomberg, these investors should rethink their approach and start paying very close attention to the data.

Initial jobless claims are released like clockwork every Thursday morning and this week's release will be significant because it is the first report following last week's disappointing non-farm payrolls report for the month of May.

Bloomberg quoted Steven Englander, a strategist at G10 FX Strategy, who argued that ahead of several recessions initial jobless claims "spiked" in the months in which non-farm payrolls fell "sharply." The strategist added that the spike "was followed by a subsequent spike in claims."

Related Link: JPMorgan Reviews The "Emotional Jobs Report"

Bloomberg continued that when Thursday's data is released, investors should expect a reading of 270,000 — up from last week's 267,000 reading.

The publication also quoted Bespoke Investment Group, which may be a bit more optimistic in its U.S. economy outlook.

"Oil state initial claims have stopped rising and are now declining," Bespoke said. "While the employment situation report last Friday was weak, we continue to see signs the labor market is not as weak as the soft payrolls print might suggest; wage growth remains solid and accelerating, while there are no signs of businesses cutting payrolls."

Posted-In: Bespoke Investment Group Bloomberg employmentAnalyst Color Top Stories Economics Media General Best of Benzinga

 

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