The number of people filing for unemployment benefits for the first time rose by 17,000 in the latest week, as 240,000 Initial Jobless Claims were reported. Continuing Claims, which measure people who continue to receive benefits after their initial claim is filed, also saw a substantial jump of 48,000 to 1.551 million.
What’s the bottom line? The latest week’s Initial Jobless Claims was the largest amount since August and also a sizeable increase from the previous week, which likely reflects some of the large layoffs that have been reported in the news. Continuing Claims have also risen by 187,000 since the beginning of October and this suggests that it’s becoming harder for people to find a job once they’re let go. The continued increase in unemployment claims may mean the labor market is not as strong as reports have indicated and could signal that a rise in the unemployment rate is ahead.