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Initial Claims Increase But Still Shrug Off Layoffs

US DATA
  • Initial jobless claims rise slightly more than expected to 196k (cons 190k) in the week to Feb 4 from 183k.
  • It’s the first increase in six weeks after a strong run that still sees the 4-week average shift lower to 189k, the lowest since April. For perspective, the 2019 average was 218 and a single week low was 173k.
  • The relatively minimal increase on the week is still firmly in contrast to recent surges in Challenger job layoffs.
  • Continuing claims also modestly higher than expected at 1688k (cons 1660k), but that increase only pushes them back to 2019 averages in a sign of ongoing labor market tightness.

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