The U.S. Labor Department reported on Wednesday that initial claims for unemployment benefits unexpectedly dropped in the week ending November 23. Claims fell by 2,000 to 213,000, compared to the previous week’s revised figure of 215,000.
Economists had predicted an increase to 217,000, but the actual figure marked the lowest level since April 27, when claims hit 209,000.
Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics, noted that while claims were briefly impacted by the Boeing strike and hurricanes earlier this year, they have stabilized, indicating a limited pace of layoffs. However, she cautioned that seasonal hiring and layoffs could make the data more volatile in the coming weeks.
The four-week moving average of initial claims also declined to 217,000, down by 1,250 from the previous week. In contrast, continuing claims, which measure the number of people receiving ongoing unemployment assistance, rose by 9,000 to 1.907 million for the week ending November 16, the highest since November 2021. The four-week average of continuing claims increased to nearly a three-year high of 1.890 million.
Vanden Houten added that elevated continuing claims in states like Washington, North Carolina, Michigan, and Ohio reflect localized challenges from the Boeing strike, hurricanes, and layoffs in the auto industry.
Conclusion
U.S. unemployment claims fell unexpectedly last week, reflecting a stabilization in layoffs despite seasonal volatility and regional challenges. However, continuing claims rose to their highest level in nearly three years, driven by localized factors such as strikes and layoffs, signaling ongoing pressure in certain areas of the labor market.
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