Figures from the US Department of Labor showed a decline in the number of newly filed unemployment claims on a weekly basis, indicating that dismissal rates remain low and that the labor market remained relatively stable during the month of March, despite the risks posed by the ongoing war in the Middle East and rising oil prices.
The ministry announced on Thursday that initial applications decreased by 9,000 applications to reach 202,000 applications in the week that ended March 28, while economic analysts’ expectations indicated 212,000 applications. The average increase in jobs in the private non-farm sector was about 18 thousand jobs per month during the three months that ended in February, a rate that is considered relatively weak and reflects the continued state of “stagnation in the labor market.”
Despite the improvement in initial orders, economists warned that the impact of the war on the energy market and high fuel prices may delay any expected improvement in employment. The data also revealed an increase in the number of beneficiaries of ongoing unemployment benefits by 25,000 people, reaching 1.841 million beneficiaries in the week ending March 21, which gives an indication of the current pace of employment.
The Bureau of Labor Statistics is expected to release the “March Nonfarm Payrolls” report on Friday, amid expectations that the unemployment rate will remain stable at “4.4 percent,” with continued uncertainty surrounding the economic conditions due to the repercussions of the war and rising prices.
