Unemployment benefit applications climbed to an over-a-year high

Per Bloomberg

A recent report by Bloomberg shows that the amount of applicants for unemployment benefits in the US is increasing. The current number of applications climbed to a new over-a-year high.

The last time the US experienced this many unemployment benefit applications was in October 2021. The report also mentioned the moderation of wholesale inflation, which they detail could be "signs of softening in the economy."

Omair Sharif, the president of Inflation Insights LLC, gave a statement regarding the CPI numbers and that the Fed should "take a breather" and observe the landscape for the next few months.

Sharif: “The bottom line is that there’s uncertainty right now in general and if that uncertainty is feeding into the labor market, that’s an even bigger reason for the Fed to pause right now and just get a sense of where things are headed.”

The final demand for the producer price index (PPI), saw an increase of 2.3% in April compared to a year ago. This was reportedly its "slowest pace since early 2021."

A Bloomberg Economics economist, Eliza Winger, commented on the increase in jobless claims and what it suggests.

Winger: “The recent surge in jobless claims is consistent with our analysis of WARN notices, which since early this year have suggested imminent softening in the labor market. This will be reflected in coming weeks, when we see clearer signs of labor-market easing in the monthly jobs report.”

In February, it was reported that the US unemployment rate hit its lowest level since 1969 at 3.4%. This came as average hourly pay increased by 4.4% in January compared to a year ago.

In November 2022, it was revealed that the fear of layoffs for Americans was getting closer to pandemic-lockdown levels. A survey by the New York Feds in October showed 43% of participants expect a higher unemployment rate a year from when the survey was launched.

See flow at unusualwhales.com/flow.

Other News:

Resources:

Bloomberg

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.