I first wanted to correct myself in the morning note that the Bank of Canada raised rates by 50 bps to 4.25%, not 25 bps as stated.
Initial jobless claims totaled 230k, spot on with expectations and up from 226k last week (revised up by 1k). The 4 week average was 230k vs 229k last week and vs 227k in the week prior. That is a 3 month high. Delayed by a week, continuing claims continued higher and now totals 1.671mm, up about 60k w/o/w and above the estimate of just under 1.62mm. That is the most since early February.
Bottom line, the most notable fact here is the rise in continuing claims as it seems that with all the supposed job openings out there, companies are clearly limiting their hiring and thus more people are collecting claims for longer. As for firing’s, it still remains very low, albeit a bit less so, as companies still hold on tight to those that they have. As for those tech workers losing their jobs, many are getting severance and those highly skilled will have plenty of options for them that might keep them from filing for claims.
Initial Claims 4 Week Avg
Continuing Claims