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US weekly jobless claims increase moderately, labor market remains stable

BY Reuters | ECONOMIC | 08:40 AM EDT

WASHINGTON, May 14 (Reuters) - The number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up inflation. Initial claims for state unemployment benefits rose 12,000 to a seasonally adjusted 211,000 for the week ended May 9, the Labor Department said on Thursday. Economists polled by Reuters had forecast 205,000 claims for the latest week. The U.S.-Israel war with Iran has disrupted shipping in the Strait of Hormuz, also boosting prices of other commodities, including fertilizers, petrochemicals and aluminum.

The government reported on Wednesday that producer prices recorded their biggest increase in four years in April. There are concerns that shortages and rising inflation could cause layoffs in some industries. The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 24,000 to a seasonally adjusted 1.782 million during the week ended May 2, the claims report showed.

The government reported last week that nonfarm payrolls increased by 115,000 jobs in April, the second straight month of strong employment gains. The unemployment rate was unchanged at 4.3%. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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