The number of Americans who filed for unemployment benefits last week soared up beating analysts’ estimates. This unexpected increase possibly indicates slowed pace in economy improvement.
The number climbed by 21,000 to 313,000 in the week ended Nov. 22, the highest since early September, from 292,000 in the prior period, the Labor Department reported Thursday in Washington. It would take several weeks of sustained elevated readings to confirm the labor market has taken a step back.
Thomas Simons, an economist at Jefferies in New York, said in a research note, “It’s particularly difficult to adjust the data during the holiday season, suggesting there should be no rush to judgment yet.”
Simons added, “Variant winter weather, the floating timing of the Thanksgiving holiday, and preparations for the holiday-shopping season that differ from prior years tend to make historical comparisons difficult.” Adding that, “Volatility will probably continue to be elevated until the end of the year, but we expect that claims will drift lower again.”
The median forecast of 48 economists surveyed by Bloomberg called for a decline to 288,000, with estimates ranging from 280,000 to 300,000. The prior week’s claims were revised from an initial reading of 291,000. Other reports Thursday showed consumer spending climbed in October at the same pace as incomes, and demand for capital goods unexpectedly dropped for a second month.
A Labor Department spokesman said as the report was released to the press that, there was nothing unusual in the claims data and no states were estimated. The four-week average of claims, a less-volatile measure than the weekly figure, climbed to 294,000 from 287,750 the week before.
The number of people continuing to receive jobless benefits dropped by 17,000 to 2.32 million in the week ended Nov. 15, the fewest since December 2000. In that same period, the unemployment rate among people eligible for benefits fell to 1.7 percent, the lowest since November 2000, from 1.8 percent the prior week, the report showed.
Initial jobless claims reflect weekly firings and typically decrease before job growth can accelerate. With consumer spending increasing, the economy seems to be performing well and is expected to continue so since gas prices are still expected to decline further next year.
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The number of Americans who filed for unemployment benefits last week soared up beating analysts’ estimates. This unexpected increase possibly indicates slowed pace in economy improvement.
The number climbed by 21,000 to 313,000 in the week ended Nov. 22, the highest since early September, ...
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