Insights
We are proud to be named a West Coast Regional Leader for 2024
Initial jobless claims remain below the pre-pandemic level
REAL ECONOMY BLOG | February 02, 2023
Authored by RSM US LLP
New filings for jobless benefits continued to defy market expectations, falling to 183,000 last week from 186,000 a week earlier, the Bureau of Labor Statistics reported on Thursday.
New jobless claims, which are a proxy for layoffs, remained below the pre-pandemic level of 218,000 for the fifth week in a row. Our preferred measure—the 13-week moving average, which takes out short-term volatility—also fell to 213,000 last week.
While the most recent week’s data will not be reflected in the January jobs report coming out on Friday, the previous three weeks should suggest another strong month of job gains.
Although Federal Reserve Chairman Jerome Powell acknowledged on Wednesday that the economy has been in a disinflationary period, fueling a sharp market rally, a continuing tight labor market should keep wage inflation a concern.
In addition, the disconnect between an increasing number of layoff announcements and low jobless claims serves as a reminder that what make headlines is not necessarily a reflection of the broader economy.
There is also a lag between the announcement dates and when the layoffs take place. Some companies are giving their employees more than a month of advance notice, pushing the layoff dates further into the future.
Let's Talk!
Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Tuan Nguyen and originally appeared on 2023-02-02.
2022 RSM US LLP. All rights reserved.
https://realeconomy.rsmus.com/initial-jobless-remain-below-the-pre-pandemic-level/
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.