US weekly jobless claims rise as expected, economists sanguine

The US jobs market eased a tad more than economists had been expecting last week.

Initial jobless claims for the week ending on 20 February increased by 10,000 to reach 272,000, according to the Department of Labor.

Economists had penciled in a reading of 270,000.

"Something has to give"- Ian Shepherdson

A four-week moving average of claims declined by 1,000 to hit 272,000.

Secondary unemployment claims, those which are not filed for the first time and referencing the week ending on 13 February slipped by 19,000 to 2.253m.

""The Dec/Jan data are subject to serious seasonal adjustment problems, but the underlying trend should now be emerging from the noise. Right now, it looks as though that trend is little changed from the pre-holiday period, in the low 270s. At that level, claims are consistent with continued rapid growth in payrolls and a further decline in the unemployment rate, which is already at the Fed's Nairu estimate. But markets think rates won't rise this year. Something has to give," Ian Sheperdson, chief economist at Pantheon Macroeconomics, said in a research note sent to clients.

"Alongside a similar monthly decline in survey week initial claims, lower continuing claims in today’s release support our outlook for a rebound in payroll growth in next week’s February employment report [...] With labor market separations trending back towards their lows, we continue to see US labor market health as very much intact," Jesse Hurwitz at Barclays chimed in.