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The numbers: New applications for unemployment benefits jumped by 23,000 to 248,000 last week to break a string of recent declines, but layoffs are expected to stay low as companies strive to fill a near-record 11 million job openings.
Initial jobless claims rose from a revised 225,000 in the prior week, the Labor Department said Thursday.
Economists polled by The Wall Street Journal had forecast initial jobless claims to total a seasonally adjusted 218,000 in the seven days ended Feb. 12.
A monthly average of jobless claims that smooths out the weekly ups and downs fell by 10,500 to 243,250. New unemployment filings spiked briefly in mid-January before turning lower again.
Big picture: The rise in claims is unlikely to last. Businesses flush with demand for their goods and services are trying to avoid layoffs in light of the biggest labor shortage in decades.
They also have a near-record number of jobs to fill — almost 11 million. Most companies want to hire, they just can’t find enough takers.
That’s a sign of a sturdy economy even if restrains some growth.
Key details: The raw of actual number of new jobless claims — that is, before seasonal adjustments — was little changed last week. That suggests the increase in the headline number was largely the result of seasonal adjustments.
The raw data only showed a sizable increase in new claims in Missouri, Kentucky and Ohio, but 33 states posted declines.
The number of people already collecting unemployment benefits, meanwhile, slid by 26,000 to 1.59 million in the week ended Feb 5.
These so-called continuing claims, which are reported with a one-week lag, have returned to pre-crisis levels and are extremely low.
Looking ahead: “Despite the uptick, we expect initial claims to continue to grind back toward 200,000,” said Mahir Rasheed, U.S. economist at Oxford Economics. “Layoffs are expected to be minimal in a tight labor market where employers continue to face difficulty hiring workers.”
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Thursday trades after reports of Russia military action along the Ukraine border.
