The numbers: Initial jobless benefit claims rose by 14,000 to 202,000 in the week ended March 26, the Labor Department said Thursday.
Claims dropped by a revised 27,000 in the previous week to 188,000 – the lowest level since 1969. Economists said this was too sharp a decline to last.
Economists polled by The Wall Street Journal had estimated new claims would rise to 195,000.
Key details: The number of people already collecting jobless benefits fell by 35,000 to 1.31 million. These so-called continuing claims are now at their lowest level since December 1969.
Big picture: Demand for labor is strong and firms are not laying off workers. With inflation high, the data are sending a clear signal for the Federal Reserve to continue to raise its benchmark policy interest rate. There is still a hope that more workers will return to the labor market, keeping wages from rising sharply.
Beyond weekly moves, the underlying trend has improved; filings are averaging 232,000 so far this year, down from an average 245,000 in the fourth quarter and 365,000 in the third quarter, said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
Looking ahead: “Overall, demand for labor remains strong and businesses continue
to struggle with supply shortages. That should limit the number of layoffs, for now,” Farooqi said.
Market reaction: U.S. stocks DJIA, -0.19% SPX, -0.63% were expected to open mixed after widespread reports that the U.S. was expected to release U.S. reserves of oil into the market.