U.S. Jobless Claims Falling Again
Last week’s 190,000 new applications for unemployment benefits represented the lowest level since September.
Applications for U.S. unemployment benefits unexpectedly fell last week, sliding to the lowest level since September and underscoring a strong jobs market where many businesses are reluctant to let go of workers.
Initial unemployment claims decreased by 15,000, to 190,000, in the week ended January 14, Labor Department data showed Thursday. The median forecast was for 214,000 applications, but the data can be particularly volatile and difficult to seasonally adjust in the winter months and around holidays.
Continuing claims, or the number of people who have already filed an initial application and are now claiming unemployment benefits, rose to 1.65 million in the week ended January 7. That followed back-to-back declines in the previous two weeks.
The four-week moving average in initial claims, which smooths out some of the week-to-week volatility, edged down to 206,000, the lowest since mid-May.
What Bloomberg Economists Say…
“The drop in initial jobless claims … reflects volatility from extreme winter weather in parts of the country that made seasonal adjustments problematic. A cleaner read might come next week, but the trend likely will continue to dovetail with the tone of the Federal Reserve’s latest Beige Book, which noted a persistently tight labor market.”
—Eliza Winger, economist
While high-profile firms in the finance, technology, and real estate sectors have announced tens of thousands of job cuts in recent months, the broader labor market remains strong. The unemployment rate closed 2022 at a five-decade low of 3.5 percent, and firms continue to hire at a solid pace amid resilient consumer demand.
That said, many economists expect further layoffs in the months ahead as the Federal Reserve’s interest rate hikes hit the economy.
On an unadjusted basis, initial claims fell by 53,582, to 285,575. The declines were broad-based across states, and were led by New York, Georgia, and Michigan. California saw an increase, but the figures may been impacted by severe flooding in the state.
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