Initial jobless claims surged unexpectedly in the second week of December, reaching a two-month high and underscoring signs of a gradually softening labor market, according to the latest data from the Department of Labor.
- The seasonally adjusted figure for initial claims jumped to 242,000, up 17,000 from the previous week’s revised level.
- This marks the highest level since mid-October and contrasts with economists’ expectations for a decline to 220,000.
The 4-week moving average, a more stable indicator of labor market trends, also rose by 5,750 to 224,250, the highest level since early November.
Continuing claims, which track those still receiving unemployment benefits, increased by 15,000 to 1,886,000 for the week ending November 30.
- This figure remains near three-year highs, highlighting the ongoing challenges faced by some segments of the workforce.
North Carolina experienced a notable increase in unadjusted initial claims, with filings rising by 1,355 to 3,859 for the week ending December 7. This regional spike contributed significantly to the overall increase in claims and points to localized pressures in certain labor markets.
Bottom Line: The latest data reinforces a trend of slow but steady softening in the labor market. As layoffs rise and continuing claims remain elevated, the economy appears to be navigating a transition from the red-hot labor market seen earlier in the recovery to a more tempered phase.
