While last week's numbers released for new jobless claims dropped to the lowest total in over a year, since the week of Sept. 6, 2008, this week's reversed that "gain." The Labor Department's numbers for new jobless claims released today indicate an unexpected rise after falling for five straight weeks.
New unemployment insurance claims rose by 17,000 to a seasonally adjusted 474,000. That was above analysts' expectations of 460,000 new claims. Despite this, claims have held a steady downward trend since the summer. In order for such numbers to signal that employers are hiring, however, the figures quoted would have to be under 425,000 new weekly jobless claims for at least a month, say analysts.
Whereas last week, the Labor Department announced that the Thanksgiving Holiday may have affected new jobless claims downward, this week they said the reverse with regards to post-holiday claims. They stated that claims may have been partly inflated by a post-holiday surge. Additionally, seasonal layoffs in the construction industry also played a role.
The four-week moving average of claims levels out fluctuations. That number fell to 473,750, its 14th straight decline and its lowest level since September 2008.
Meanwhile, the continuing claims figures dropped by 303,000 to 5.16 million. This is the lowest level since February. This number has fallen in 11 of the past 12 weeks. Unfortunately, this number does not include those underemployed, working fewer hours than they would like, and those who have left the jobless rolls as their benefits expire.
Additionally, the continuing claims do not include millions of people that have used up the regular 26 weeks of jobless benefits typically provided by states, who are receiving extended benefits for up to 73 additional weeks, which are paid for by the federal government. That number is approximately 4.6 million people for the week ended Nov. 21, the latest set of figures available, an increase of 130,000 from the prior week, some of which is due to a further extension Congress enacted last month.
Written by Michael Santo
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