US: Initial jobless claims indicating jobs picture is beginning to firm up again after a rough winter – Wells Fargo

Data released on Thursday, showed a modest increase in initial jobless claims while continuing claims hit a fresh one-year lows as it gradually continues to retreat. According to analysts at Wells Fargo, the rise in initial claims reflects some catch-up in filings after mid-month storms. They consider recent employment data suggest Friday’s non-farm payrolls will show a pickup in job growth. 

Key Quotes: 

“The rise in initial jobless claims to 745K last week reflects some catch-up after winter storms delayed filings in the middle of February.”

“In short, initial jobless claims are finally indicating that the jobs picture is beginning to firm up again after a rough winter.”

“Other data suggest the jobs recovery has regained its footing. Job postings according to Indeed.com in February surpassed their pre-COVID baseline. The latest employment reading from the ISM services index gave back some ground in February, but still logged the second-highest reading since the pandemic began.”

“We look for payrolls to have increased by 210K in February, but expect a marked pickup in the spring and summer.”