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The number of initial claims for unemployment insurance in the US increased in the most recent week, according to figures from the Department of Labor on Thursday.
In the week ending March 4, the advance figure for seasonally adjusted initial claims was 211,000. This was up 21,000 from the previous week’s unrevised level of 190,000.
Markets had expected initial claims to come in at 195,000, according to FXStreet-cited consensus.
The four-week moving average was 197,000, up 4,000 from the previous week’s unrevised average of 193,000.
The advance seasonally adjusted insured unemployment rate was 1.2% for the week ending February 25. The advance number for seasonally adjusted insured employment during the same week was 1.718 million, up 69,000 from the prior week.
The figures on Thursday come as bets for a 50-basis-point interest rate hike by the Federal Reserve in March pick up steam.
According to the CME FedWatch tool, markets think there is a 76% chance that the US central bank will lift rates by 50 basis points at its March meeting, with just a 24% chance of a smaller 25 basis point hike again.
A week ago, markets believed there was a 68% chance of a 25 basis point lift.
On Tuesday, Federal Reserve Chair Jerome Powell said the US labour market remains ‘extremely tight’ as he warned that US interest rates will likely peak at a higher level than previously anticipated.
Separately, a report by Challenger, Gray & Christmas Inc on Thursday showed that US jobs cuts reduced in February.
US-based employers announced 77,770 job cuts in February, compared to 102,943 in January.
The outplacement and coaching firm said February’s figure was the highest for the month since 2009, when 186,350 cuts were recorded.
‘Right now, the overwhelming bulk of cuts are occurring in Technology. Retail and Financial are also cutting right now, as consumer spending matches economic conditions. In February, job cuts occurred in all 30 industries Challenger tracks,’ said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.
The reports come ahead of US non-farm payrolls on Friday, released at 1330 GMT.
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