Recession fears ease as jobless claims remain at low levels

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Dow Jones NewsApr 10, 2:04 PM UTC
MW Recession fears ease as jobless claims remain at low levels

By Greg Robb

 

First-time unemployment-benefits claims edge upward to 223,000. That's well below worrisome levels.

 

The numbers: Initial jobless claims rose by 4,000 to 223,000 in the week ended April 5, the Labor Department said Thursday.

 

The gain was in line with the expectations of economists surveyed by the Wall Street Journal.

 

Big picture: Claims have stayed remarkably steady even as economists identify a rising risk of a recession in the U.S. economy.

 

When claims, which are a good and timely measure of layoffs, are below 300,000, that is generally seen as representative of a healthy economy.

 

In fact, claims have been below 226,000 for six straight weeks and for 16 of the past 17 weeks.

 

This raises the prospect that the economy could experience negative GDP growth, setting the stage for a recession, while the labor market remains relatively strong.

 

Market reaction: Stocks DJIA SPX opened lower on Thursday while the yield on the 10-year Treasury note BX:TMUBMUSD10Y was about flat at 4.305%.

 

-Greg Robb

 

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04-10-25 1004ET

 
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