Jobless Claims
Jobless Claims data is published by the U.S. Department of Labor, tallying weekly unemployment benefits claims.
- Typically an increase in claims indicates a weakening labor market
- A decrease usually indicates a strengthening labor market
A strong labor market generally has a positive impact on the overall economy. An increase in the number of jobs implies an increase in average household spending power, leading to increased consumption and economic growth.
Because the data is released on a weekly basis, it often isn’t possible to draw wide-ranging conclusions, but as a snapshot the data is a valuable indicator and is highly regarded and valued by investors and analysts.
Latest Release
Week ending May 5, 2012:
Initial claims: 367,000
This figure represents a decrease of 1,000 from the previous week's revised figure of 368,000. The four-week moving average was 379,000.
Trading Jobless CLaims with Binary Options
A typical Jobless Claims Binary Option may be: Jobless Claims >= 395000
If you believe the new jobless claims figure will be equal to or more than 395,000, you Buy this Binary Option.
If you believe the new jobless claims figure will be less than 395,000, you Sell this Binary Option.
More about Jobless Claims
Because it is released weekly, the Jobless Claims report can be an especially volatile indicator.
This can be good or bad for traders – some weeks the data comes and goes without much notice, others the markets can react strongly to a striking change. A four-week average of jobless claims is often used as a more realistic indicator of actual employment levels.
The Department of Labor also releases continued claims data to measure the total number of individuals that are claiming unemployment benefits. The initial claims figure is released a week before the continued claims data for the same week, and thus has a greater impact on markets on sentiment.
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