Unemployment Claims 20/1/2022

This article includes an explanation of unemployment rates and their impact on financial markets and expectations for today's data with a review of previous data

It determines the amount of individuals claiming unemployment insurance for the first time during the past week. This weekly indicator provides very timely data, but traders see unemployment as a sluggish indicator that gives little indication of the future performance of the economy. A downward trend has a positive effect on a country's currency, as workers tend to spend more money, and consumption makes up a large part of GDP.

The number of Americans filing new claims for unemployment benefits rose by 23 thousand from the previous period, the most in 8-weeks, to 230 thousand in the week ending January 8th, compared with market expectations of 200 thousand, as a surge in coronavirus cases led by the Omicron variant disrupted activity from airlines to schools. Still, claims remained below their pre-pandemic level, suggesting labor market conditions continued to tighten as the US economy expanded at a solid pace and demand for labor remained strong. Claims hit a 52-year low of 188 thousand during the first week of December. On a non-seasonally adjusted basis, initial claims jumped by 104 thousand to 419 thousand, with notable increases being recorded in California (12.8 thousand), New York (10.8 thousand), Texas (9.4 thousand), Kentucky (8.5 thousand), and Missouri (7.3 thousand)

Estimate for today's data is 227 thousand

In the event that the current version was less than expected, this is an indication of the lack of complaints about unemployment, which affects the currency in a positive way and vice versa

The statement will be issued at 3:30 pm Beirut time

Tags : USD