US: Low jobless claims reading reflect strong labor market conditions - Nomura

Analysts at Nomura note that the US initial unemployment claims fell 7k to 222k for the week ending 17 February from the previous week’s 229k.

Key Quotes

“Continuing unemployment claims dropped 73k to 1875k in the week ending 10 February, following relatively elevated readings in January. It is possible that seasonal layoffs near the year-end may have temporarily contributed to the elevated readings in January. Low jobless claims readings reflect strong labor market conditions. The four-week moving average of the initial claims fell 2k to 226k, which is very close to multi-decade lows. We expect this series to remain low as we see continued strength in the labor market over the near- to medium term.”