U.S. Unemployment Claims Hit Three-Year High
The slight decrease in initial unemployment claims suggests that, while the U.S. labor market shows signs of cooling, it remains strong and healthy.
The number of Americans filing new unemployment claims dropped to its lowest level in a month last week, yet still reached its highest point in more than three years, indicating that unemployed individuals are increasingly struggling to find new jobs.
Initial state unemployment claims fell by 1,000, seasonally adjusted to 219,000 for the week ending December 21, according to the Department of Labor’s report on Thursday. Economists had predicted 224,000 claims for the week.
The number of people receiving benefits after the first week of assistance, a gauge of hiring, rose by 46,000, seasonally adjusted to 1.91 million, the highest level since November 2021, during the week ending December 14. Economists had expected the level of continuing claims to be 1.88 million.
What the data means
The rise in continuing claims suggests that those receiving benefits are having more difficulty finding new jobs. This could indicate a decline in worker demand, although the economy remains strong.
The four-week moving average of weekly claims, which smooths out some of the weekly volatility, increased by 1,000, reaching 226,500. Weekly unemployment claims are seen as indicative of layoffs in the U.S.
Thus, while the labor market shows signs of recent cooling, it remains generally healthy.”
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