Initial Claims

AAA

DEFINITION of 'Initial Claims'

A measure of the number of jobless claims filed by individuals seeking to receive state jobless benefits. This number is watched closely by financial analysts because it provides insight into the direction of the economy. Higher initial claims correlate with a weakening economy.

INVESTOPEDIA EXPLAINS 'Initial Claims'

The strength of a nation's economy will have an impact on the appreciation or depreciation of its currency against other major currencies. Therefore, forex traders typically look at the initial claims figure as part of their analyses when assessing a currency's prospects for the immediate future. Generally speaking, week-by-week numbers are too volatile to get an accurate picture of economic changes, so four-week moving averages are typically used for the initial claims metric.

RELATED TERMS
  1. National Average Wage Index - NAWI

    An index calculated annually by the Social Security Administration ...
  2. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  3. Birth-Death Ratio

    A figure that represents the net number of jobs provided from ...
  4. Help-Wanted Index - HWI

    The U.S. job market index, published monthly by the Conference ...
  5. Employment And Training Administration ...

    A federal agency that operates under the U.S. Department of Labor. ...
  6. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
Related Articles
  1. Forex Education

    The Fundamentals Of Forex Fundamentals

    Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators.
  2. Economics

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  3. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  4. Markets

    A Guide To Conference Board Indicators

    Learn to put the CB data sets to trading use. Each chapter takes you through one of the board's benchmark indicators or surveys, their significance and their applications.
  5. Economics

    How Demographics Drive The Economy

    Demographics can have a profound effect on the economy. An aging population coupled with a declining birthrate points to a decline in economic growth.
  6. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  7. Economics

    Understanding the Multiplier Effect

    The multiplier effect is an economic term referring to how an increase in one economic activity can cause an increase throughout many other related economic activities.
  8. Economics

    Is the consumer price index (CPI) the best measure of inflation?

    Discover how the CPI is one of the most used indexes to measure inflation, but due to its limitations, the PPI and GDP deflator are also required.
  9. Economics

    What is the difference between the consumer price index (CPI) and the producer price index (PPI)

    Learn how the PPI and CPI differ in the composition of their target sets of goods and services and the types of prices collected for them.
  10. Professionals

    How do you protect yourself against sudden unemployment?

    Learn the steps you can take to protect yourself from unexpected job loss and how you can turn a potentially desperate time into a career opportunity.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center