U.S. initial claims jumped a larger-than-expected 28,000 in the week ending March 30, building on a 16,000 jump to an unrevised 357,000 level the prior week. The reading in the latest week marks the highest pace of claims since late November 2012 when the weekly data was still being impacted by activity disruptions in the aftermath of Hurricane Sandy.
The four-week moving average of initial claims rose for a second consecutive week, climbing to 354,250 from 343,000 the previous week. Continuing claims, for the week ending March 23, slipped 8,000 to 3,063,000 from 3,071,000 the previous week.
The jump in initial claims in the latest week may in part have reflected some difficulties seasonally adjusting the data around Easter; however, part of the gain may also reflect the early impact on job markets of sizable government spending cuts implemented in early March. The impact of the weekly reading on claims itself on expectations ahead of tomorrow’s March payroll employment report will likely be limited, given the payroll employment survey was conducted earlier in the month.
