Weekly US jobless claims rise unexpectedly

The number of Americans who filed new applications for unemployment benefits rose unexpectedly last week, reaching the highest level in three months, although there is no essential change in the strong demand for workers in the working market.

The outlook was reinforced by a report from the work Department on Thursday that also showed the number of people on state unemployment rolls was the lowest in more than 52 years at the end of April.

Companies are having a hard time finding workers to fill record vacancies, which is contributing to inflation.

“There is no change in the underlying message of a very tight job market and employers unwilling to lay off existing workers in the face of extreme labor shortages,” said Conrad DeQuadros, senior economic adviser at Brean Capital In New York.

The initial requests for state unemployment benefits they rose 1,000 to 203,000 seasonally adjusted for the week ending May 7, the highest level since mid-February. The previous week’s data was revised to show 2,000 more applications than previously estimated. Economists consulted by Reuters estimated 195,000 orders for the last week.

Claims have been largely flat since hitting a more than 53-year low of 166,000 in March. Economists blamed the second straight weekly increase on residual volatility from moving holidays such as Holy Week, jewish passover and the spring school holidays.

There were a record 11.5 million job openings on the last day of March, and nonfarm payrolls grew by 428,000 in April, the 12th consecutive month of employment gains above 400,000. Applications have fallen from an all-time high of 6.137 million in early April 2020.

The number of people receiving benefits after an initial week of aid fell by 44,000 to 1.343 million during the week ending April 30. The was the lowest level for so-called continuing claims since January 1970.

Long way to lower inflation

The Federal Reserve it raised its official interest rate by half a percentage point last week, the biggest increase in 22 years, and said it would start cutting its bond holdings in June.

The central bank, which began raising rates in March, hopes to realign demand and supply for workforce.

The harshest conditions in the working market they are boosting wages, which helps keep inflation unbearably high. However, there are signs that inflation may have probably peaked, at least when measured on an annual basis.

In another report on Thursday, the work Department It said that the producer price index for final demand increased by 0.5% in April due to the slowdown in the prices of energy products. That marked a sharp decline from March, when the PPI rose 1.6 percent. April’s increase was in line with economists’ expectations.

The energy prices they rose 1.7% after soaring 6.4% in March. The food prices they rose 1.5% after advancing 2.5% in March. As a result, prices of goods they gained 1.3% after rising 2.4% in March. The cost of services was unchanged after jumping 1.2% in March. In the 12 months to April, the PPI rose 11% after accelerating 11.5% in March.

The slowdown in the monthly advances in producer prices follows a similar trend in the consumer prices last month. The government reported on Wednesday that consumer prices posted their smallest increase in eight months in April. The annual rise in consumer prices it also slowed for the first time since last August.

However, the path to inflation The drop will likely be long, since by all measures it is well above the Fed’s 2% target.

The producer pricesexcluding the foodthe Energy and the commercial services, rose 0.6% in April after rising 0.9% in March. In the 12 months to April, the so-called core PPI gained 6.9% after rising 7.1% in March. The rise in underlying producer prices followed a similar trend with the core CPI.

“There are signs of cooling, although gains remain uncomfortably high,” said Will Compernolle, senior economist at FHN Financial in New York. “The fed has a long way to go to bring price increases closer to its target.”

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