- The first unemployment complaints in the United States increased by 18,000 during the week ending on April 26.
- The US dollar index clings to small daily earnings below 100.00.
There were 241,000 first complaints on unemployment during the week ending on April 26, the weekly data published by the US Labor Department (DOL) showed on Thursday. This impression followed the imprint of the previous week of 223,000 (revised at 222,000) and became worse than waiting for the market of 224,000.
More details on the publication revealed that the unemployment rate provided by the insured man adjusted in seasonally was 1.3%.
“The number in advance for insured unemployment of seasonal insured during the week ending on April 19 was 1,916,000, an increase of 83,000 compared to the revised level of the previous week,” Dol in its press release and noted that it was the highest level for insured unemployment since November 13, 2021, while it was 1,970,000 insured.
Market reaction
The US dollar index (USD) withdrew with the immediate reaction to this report and was seen for the last time winning 0.1% on the day at 99.75.
Employment FAQ
Occupational market conditions are a key element to assess the health of an economy and therefore a key engine for the assessment of currencies. High employment, or low unemployment, has positive implications for consumer spending and therefore economic growth, increasing the value of the local currency. In addition, a very tight labor market – a situation in which there is a shortage of workers to fill the open positions – can also have implications on the levels of inflation and therefore monetary policy as a low offer of labor and high demand leads to higher wages.
The pace to which wages increase in an economy is essential for decision -makers. High wages growth means that households have more money to spend, which generally leads to an increase in consumer goods prices. Unlike more volatile sources of inflation such as energy prices, wage growth is considered to be a key component of underlying and persistent inflation because salary increases are unlikely to be canceled. Central banks around the world pay particular attention to data on wage growth during the decision of monetary policy.
The weight that each central bank attributes to labor market conditions depends on its objectives. Some central banks explicitly have mandates linked to the labor market beyond control of inflation levels. The American Federal Reserve (Fed), for example, has the double mandate to promote maximum employment and stable prices. Meanwhile, the only single mandate of the European Central Bank (ECB) is to keep inflation under control. However, and despite all the mandates they have, labor market conditions are an important factor for decision -makers, given its importance as a gauge in the health of the economy and their direct relationship with inflation.
