A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended June 1st.
The Labor Department said initial jobless claims climbed to 229,000, an increase of 8,000 from the previous week’s revised level of 221,000.
Economists had expected jobless claims to inch up to 220,000 from the 219,000 originally reported for the previous week.
Meanwhile, the report said the less volatile four-week moving average edged down to 222,250, a decrease of 750 from the previous week’s revised average of 223,000.
The Commerce Department also released a report on Thursday showing the U.S. trade deficit widened significantly in the month of April.
The Commerce Department said the trade deficit surged to $74.6 billion in April from a downwardly revised $68.6 billion in March.
Economists had expected the deficit to widen to $76.1 billion from the $69.4 billion originally reported for the previous month.
The increase in the size of the trade deficit came as the value of imports jumped by 2.4 percent to $338.2 billion, while the value of exports climbed by 0.8 percent to $263.7 billion.
Meanwhile, revised data released by the Labor Department on Thursday showed U.S. labor productivity increased by slightly less than expected in the first quarter of 2024.
The Labor Department said labor productivity crept up by 0.2 percent in the first quarter compared to the previously reported 0.3 percent increase. Economists had expected the uptick in productivity to be downwardly revised to 0.1 percent.
The report said the surge in unit labor costs in the first quarter was also downwardly revised to 4.0 percent from the previously reported 4.7 percent. Unit labor costs were expected to spike by an upwardly revised 4.9 percent.
At 11 am ET, the Treasury Department is scheduled to announce the details of this month’s auctions of three-year and ten-year notes and thirty-year bonds.