This average is seen as a better measure of labor market trends because it reduces volatility in the data.
Today’s report indicated that the US labor market remains resilient despite layoffs in the travel and hospitality industries due to the coronavirus pandemic.
The US Department of Labor reported today that initial jobless claims rose by 7,000 in the week ended March 25 to a total of 198,000. While this number was slightly higher than the expectations of CNBC’s experts, it still remains low overall. This suggests that companies are not quick to dismiss employees, in spite of the rising unemployment rate anticipated in the coming months.
The four-week moving average of initial claims also increased by 2,000, to a level of 198,250. This measure is typically seen as a more precise way of gauging progress in the job market, since it takes into account any volatility in the initial claims data.
The report indicates that, despite layoffs in the travel and hospitality sectors due to the coronavirus pandemic, the US labor market is holding up well.