U.S. Jobless Claims Rebound Less Than Expected To 200,000

(RTTNews) - A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits rebounded by less than expected in the week ended May 2nd.

The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000 from the previous week's revised level of 190,000.

Economists had expected jobless claims to climb to 205,000 from the 189,000 originally reported for the previous week.

In the previous week, jobless claims dropped to their lowest level since hitting a matching figure in the week ended September 24, 2022.

"The latest jobless claims figures show a labor market that's more than holding its own despite over two months of conflict with Iran," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

She added, "The oil price shock could still have some spillover effect on the labor market, but for now the Fed should feel comfortable leaving interest rates steady for an extended period while it monitors inflation."

Meanwhile, the report said the less volatile four-week moving average slipped to 203,250, a decrease of 4,500 from the previous week's revised average of 207,750.

The Labor Department also said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 10,000 to 1.766 million in the week ended April 25th.

The four-week moving average of continuing claims also dipped to 1,789,750, a decrease of 5,250 from the previous week's revised average of 1,795,000.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of April.

Economists currently expect employment to rise by 63,000 jobs in April after surging by 178,000 jobs in March, while the unemployment rate is expected to remain unchanged at 4.3 percent.