Initial Jobless Claims rose by 6,000 in the latest week, with 225,000 people filing for unemployment benefits for the first time. Continuing Claims were basically flat, rising by 1,000, as 1.826 million people are still receiving benefits after filing their initial claim.
What’s the bottom line? Initial Jobless Claims remain subdued, which could be due in part to the gig economy. Some people who are let go from their jobs are choosing to work for companies like Uber instead of filing for unemployment benefits. In addition, many layoffs have occurred in the technology sector, where employees tend to receive generous severance packages, thereby delaying some filings for unemployment.
Meanwhile, Continuing Claims are still at elevated levels, topping 1.8 million for 17 straight weeks and remaining near three-year highs. Generally, companies tend to stop hiring (which keeps people on benefits for longer) before they start firing (which keeps first-time filers tame), and this also explains some of the dynamics in the data.