Market Begins Suspicion Of NFP Expectations After Unemployment Claims Data Released! - Kakiforex | Forex markets for the smart money. Market Begins Suspicion Of NFP Expectations After Unemployment Claims Data Released! Market Begins Suspicion Of NFP Expectations After Unemployment Claims Data Released!

April 2, 2021

Market Begins Suspicion Of NFP Expectations After Unemployment Claims Data Released!

 The number of Americans submitting new claims for unemployment benefits unexpectedly rose last week even as the labor market recorded a recovery driven by brisk economic activity, increased vaccinations and substantial fiscal stimulus.


Initial claims for unemployment benefits were 719,000 for the week ended March 27 based on a report released by the Department of Labor on Thursday.


This reading is up from the previous week which saw a total of only 658,000 claims, the lowest figure since mid-March 2020. Where in March last year, the government imposed a curfew and caused many economic sectors to close to curb the spread of the Covid-19 outbreak.



This reading also exceeded the expectations of experts who predicted only 680,000 applications. A $ 1.9 trillion pandemic aid package from the White House will send an additional $ 1,400 in checks to eligible households and extend the government’s stimulus for the unemployed until Sept. 6 to boost consumer spending.


According to economic observers, the labor market is still far from a full recovery. Unemployment claims remain above the 665,000 peak recorded during the economic recession in 2007-2009. In a healthy labor market, the number of claims is usually in the range of 200,000 to 250,000.


Even so, a Reuters survey found NFP data is expected to increase by 647,000 jobs last month.