Unemployment Claims Indicate Cracks in the Labor Market

Initial weekly jobless claims fell by 5,000 to 245,000, but this figure remains among the highest levels recorded since October. Continuing claims also dropped slightly by 6,000, bringing the total to 1.945 million. For over a year, continuing claims have stayed above 1.8 million and have now been above 1.9 million for four weeks in a row.

What’s the bottom line?
The upward trend in both initial and continuing unemployment claims underscores persistent challenges within the labor market. Furthermore, since unemployment benefits usually last only 26 weeks, the increase in continuing claims as benefits expire suggests deeper weaknesses in the job market and indicates that hiring is proceeding at a slower pace.