Unemployment Claims Unexpectedly Rise to 211,000, Continuing Claims Match 14-Month High
US Initial Jobless Claims Rise Unexpectedly as Continuing Claims Match 14-Month High
The US Labor Department reported on Thursday that initial jobless claims increased by 21,000 to 211,000 in the week ended March 4, shattering expectations of a small uptick to 195,000.[0] This marks the first time in 8 weeks that more than 200,000 claims have been filed.[1]
The number of Americans consecutively receiving unemployment benefits increased by 69,000 for the week ending Feb. 25, bringing continuing claims to 1.72 million.[2] This is the highest number of continuing claims since November 2021.
The four-week moving average, which smooths out some of the weekly fluctuations, increased by 4,000 to 197,000, staying below the 200,000 mark for the sixth consecutive week.[3]
This uptick in jobless claims comes as the US Bureau of Labor Statistics reported the country’s unemployment growth in February.[4] The advance figure for seasonally adjusted initial claims was 211,000, an increase of 21,000 from the previous week's unrevised level of 190,000.[5]
The advance seasonally adjusted insured unemployment rate was 1.2% for the week ending February 25, an increase of 0.1 percentage point from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending February 25 was 1,718,000, an increase of 69,000 from the previous week.
Projections from the Federal Reserve’s December meeting show that unemployment is expected to reach 4.5% by the end of 2021 and 4.6% by the end of 2022.[2]
On Wednesday, the ADP said private sector payrolls grew by 242,000 through the middle of last month, more than double its estimate for January.[6]
Overall, the data shows that while unemployment claims have risen, there is still some evidence of labor hoarding by companies in a market with nearly two unfilled jobs for every unemployed person.[7]
0. “US Jobless Claims Jump to 211000, Highest Level Since December” Bloomberg, 9 Mar. 2023, https://www.bloomberg.com/news/articles/2023-03-09/us-jobless-claims-jump-to-211-000-highest-level-since-december
1. “Applications for US unemployment benefits have increased the most in the past five months” Yid Info, 9 Mar. 2023, https://yidinfo.net/applications-for-us-unemployment-benefits-have-increased-the-most-in-the-past-five-months/
2. “Jobless claims rise sharply to highest level since December” Fox Business, 9 Mar. 2023, https://www.foxbusiness.com/economy/jobless-claims-rise-sharply-highest-level-december
3. “Jobless claims rise more than expected in past week” Seeking Alpha, 9 Mar. 2023, https://seekingalpha.com/news/3945927-jobless-claims-rise-more-than-expected-in-past-week
4. “U.S. Jobless Claims Record Highest Weekly Increase; Bitcoin Price Jumps” CoinGape, 9 Mar. 2023, https://coingape.com/us-jobless-claims-bitcoin-price-jumps/
5. “US initial jobless claims increase in most recent week” Marketscreener.com, 9 Mar. 2023, https://www.marketscreener.com/quote/stock/CME-GROUP-20701657/news/US-initial-jobless-claims-increase-in-most-recent-week-43203164/
6. “U.S. jobless claims hit 10-week high of 211,000” Yahoo Finance, 9 Mar. 2023, https://finance.yahoo.com/news/u-jobless-claims-hit-10-085345366.html
7. “U.S. jobless claims hit 10-week high of 211,000 By Investing.com” Investing.com, 9 Mar. 2023, https://www.investing.com/news/economic-indicators/us-jobless-claims-hit-10week-high-of-211000-3026300
