Initial jobless claims were down 1,000 to 191,000 in the week ended March 18, slightly below the lowest forecast of 195,000 in an Econoday survey. The 4-week average was down a scant 250 to 196,250, still at odds with ongoing reports of layoffs led by the tech sector.

By contrast, continuing claims increased 14,000 to 1.694 million in lagging data for the March 11 week. Yet the unemployment rate for insured workers remained unchanged for the third consecutive week at a very low 1.2 percent.

While the Federal Reserve raised rates by a quarter point Wednesday, Chair Jerome Powell acknowledged the decision was complicated by banking woes that made Fed officials"consider" pausing instead. As long as the labor market remains tight, prospects of rate cuts remain low.

Jobless claims for the March 18 week are expected to come in at 195,000 versus 192,000 in the prior week.

New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smooths out weekly volatility.

Jobless claims are an easy way to gauge the strength of the job market. The fewer people filing for unemployment benefits, the more have jobs, and that tells investors a great deal about the economy. Nearly every job comes with an income that gives a household spending power. Spending greases the wheels of the economy and keeps it growing, so a stronger job market generates a healthier economy.

There's a downside to it, though. Unemployment claims, and therefore the number of job seekers, can fall to such a low level that businesses have a tough time finding new workers. They might have to pay overtime wages to current staff, use higher wages to lure people from other jobs, and in general spend more on labor costs because of a shortage of workers. This leads to wage inflation, which is bad news for the stock and bond markets. Federal Reserve officials are always on the look-out for inflationary pressures.

By tracking the number of jobless claims, investors can gain a sense of how tight, or how loose, the job market is. If wage inflation looks threatening, it's a good bet that interest rates will rise, bond and stock prices will fall, and the only investors in a good mood will be the ones who tracked jobless claims and adjusted their portfolios to anticipate these events.

Just remember, the lower the number of unemployment claims, the stronger the job market, and vice versa.