Jobless claims fell for the second straight week but continuing claims rose to a three-year high showing that the labor market is continuing to cool despite claims falling.
- Initial jobless claims decreased by 6,000, bringing the total to 213,000 for the week ending November 16th. This marks the lowest level of claims since mid-February.
- The 4-week moving average of initial claims fell by 3,750, reaching 217,750—the lowest average since March.
Continuing Claims: For the week ending November 9th, continuing claims—which track individuals receiving unemployment benefits for an extended period—rose by 36,000, hitting 1.91 million. This represents the highest level since November 2021, signaling a concerning trend.
- While layoffs appear to be relatively low, those who lose their jobs seem to be struggling more than before to find new employment opportunities.
The Bottom LineThough the number of initial jobless claims has fallen to its lowest level in months, the rise in continuing claims reveals a less optimistic picture. The labor market may be showing signs of weakening as it becomes harder for those who have lost their jobs to find new opportunities. This dual trend—fewer layoffs but longer job search times—highlights the complexities of the current economic landscape and the challenges workers continue to face.
