Initial Jobless Claims declined by 16,000 in the latest week, with 187,000 people filing for unemployment benefits for the first time. Not only was this well below expectations, it was also the lowest reading since September 2022. Continuing Claims also fell by 26,000, with 1.806 million people still receiving benefits after filing their initial claim.
What’s the bottom line? Initial Jobless Claims data can be volatile at the start of a new year, as layoffs tend to decline around the holiday season. Yet the low number of first-time filers still suggests a tight labor market where employers are holding on to workers. And while Continuing Claims have fallen over the last few weeks, they are still elevated, especially when compared to September’s low of 1.658 million filers. This suggests it’s become harder for people to find employment once they are let go.