Initial Jobless Claims rose by 12,000 in the latest week, with a higher than expected 218,000 people filing for unemployment benefits for the first time. Continuing Claims also rose by 14,000, remaining near the highest level in more than two years as 1,875,000 people are still receiving benefits after filing their initial claim.
What’s the bottom line? The low number of Initial Jobless Claims suggests that layoffs remain muted as employers are trying to hold on to workers. Yet, Continuing Claims have been trending higher and point to a weakening labor market, where it’s much harder for people to find employment once they are let go. Note that this data may be volatile in the coming weeks due to the Christmas and New Years holidays.