The U.S. Department of Labor released its latest jobless claims data on Thursday (1st). The adjusted number of initial jobless claims reported last week was 225,000, a decrease of 16,000 from the previous revised value of 241,000. and lower than market expectations of 235,000. However, the number of people still claiming unemployment benefits has risen to its highest level since February this year, suggesting that in a cooling labor market it is more difficult for the unemployed to find a new job.
As of the week of Nov. 26, the adjusted number of initial jobless claims in the US was 225,000, below market expectations of 235,000, the previous revised number was 241,000, and the 4-week moving average was 227,000.
For the week ending Nov. 19, the adjusted number of Americans continuing to receive unemployment benefits was 1.608 million, an increase of 57,000 from last week’s unrevised 1.551 million and above market expectations of 1.573 million, the 4-week moving average The reported value is 1.5085 million people.
Economists have been watching the continuing jobless claims number closely in recent weeks because it’s a measure of how hard it is for people to find a new job after losing their jobs, and a spike in the data also suggests a looming recession. While ongoing claims have increased over the past couple of months, they remain close to historic lows.
While big tech companies and the banking sector have started laying off workers, this is still limited to a few industries. Meanwhile, data released last week showed fewer jobs and slower wage growth in October, suggesting demand for workers may be starting to weaken.
In terms of starting unemployment benefits, market analysis has shown that data tends to fluctuate significantly during the holidays. Last week, just after the Thanksgiving holiday, the four-week moving average that eliminated this volatility was slightly climbed to 228,750.
The November nonfarm report will be released on Friday 2. External estimates will show that US employers will reduce hiring in November and the number of new jobs will fall to 200,000, from a previous value of 261,000. remain at 3.7%, unchanged from the previous value.
