Today's Report (12/09/2021)
In the week ending December 4, the advance figure for seasonally adjusted initial claims was 184,000, a decrease of 43,000 from the previous week's revised level. This is the lowest level for initial claims since September 6, 1969, when it was 182,000. The previous week's level was revised up by 5,000 from 222,000 to 227,000. The 4-week moving average was 218,750, a decrease of 21,250 from the previous week's revised average. This is the lowest level for this average since March 7, 2020, when it was 215,250. The previous week's average was revised up by 1,250 from 238,750 to 240,000.
The advance seasonally adjusted insured unemployment rate was 1.5% for the week ending November 27, an increase of 0.1 percentage point from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 27 was 1,992,000, an increase of 38,000 from the previous week's revised level. The previous week's level was revised down by 2,000 from 1,956,000 to 1,954,000. The 4-week moving average was 2,027,500, a decrease of 54,250 from the previous week's revised average. This is the lowest level for this average since March 14, 2020, when it was 1,730,750. The previous week's average was revised down by 2,500 from 2,084,250 to 2,081,750.
What Is It?
Jobless claims are a statistic reported weekly by the US Department of Labor that counts people filing to receive unemployment insurance benefits. There are two categories of jobless claims—initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have already been receiving unemployment benefits.
What Is The Fundamental Effect?
An increasing or decreasing trend suggests a deteriorating or an improving labor market. The lower the number of unemployment claims, the stronger the job market. Generally, numbers standing above 400,000 for several weeks could suggest a danger of falling into a recession.
What Effect Does It Have On The Market?
CURRENCY - A steady climb in initial claims, might turn foreign investors away from US securities, which can weaken the Dollar’s value in foreign exchange markets.
STOCKS - Stocks tend to fare badly when there is an increase in claims. However, such a report has the potential to lower interest rates, which is normally positive for stocks.
BONDS - The higher the figure, the more bullish news it is to Bond investor's ears. A rise points to a weaker economy and diminishing inflation pressures. A continuous drop in claims hints at a sturdier economic climate ahead. More inflation leads to lower bond prices and rising yields.