Unemployment Insurance Claims Decline in the U.S.

According to the U.S. Department of Labor, fewer Americans filed for unemployment benefits last week. Initial claims for unemployment benefits decreased from 215,000 the previous week to 213,000 for the week ending November 23. Economists had predicted 215,000 claims. The number of continuing claims, an indicator of the size of the unemployed population, rose to 1.91 million during the week ending November 16, up from 1.9 million the previous week. Continuing unemployment claims are at their highest level in three years. Labor market data has provided mixed signals throughout the year, complicating the Federal Reserve's interest rate decisions aimed at balancing employment and inflation targets. The number of job openings per unemployed American, which was two in mid-2022, is currently roughly one. The unemployment rate has also increased from 3.7% at the end of 2023 to above 4% this year. On the other hand, the economy created more than 100,000 new jobs on average per month this year, and unemployment claims do not indicate a sharp increase in layoffs.