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Number of applications for unemployment benefits in USA rose

The number of submitted applications for unemployment benefits in USA during the last week rose more than expected. The initial claims for unemployment benefits rose by 17,000 to 274,000, which is the biggest increase in a year amid strong increase in planned layoffs (35% last month), according to the US Department of Labor. Despite that data is alarming, the overall situation in the labor market remains relatively positive, as the analysts consider that increase is primarily technical.

The economists expected claims for unemployment benefits in USA to increase to 260,000. However, applications are under 300,000 per week, which is an indicator of a healthy labor market. Moreover, for 61 consecutive weeks the submitted applications for unemployment benefits are under 300,000 applications, which is the longest streak since 1973.

A four-week indicator, which is considered more resistant to the weekly, reported an increase of 2,000 applications to a total of 258,000.

Last month, US companies have cut more than 65,100 people, which represent more than 35% growth compared to March. Most people were cut in the energy industry – just under 19,800 employees. So far this year the sector has freed more than 72,600 people.

Tomorrow, the US Labor Department will publish the data on unemployment and employment in April 2016. The expectations are that in US private sector were created 202,000 new jobs last month and the unemployment rate to remain stable at 5%.

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