Weekly applications for unemployment insurance unexpectedly increased, while continuing claims rose more than projected, as indicated by the US Department of Labor on Thursday. The seasonally adjusted number of initial claims increased by 17,000 to 242,000 in the week ended Dec. 7. Analysts had consensus expectations for a level of 220,000 based on a survey compiled by Bloomberg.
Additionally, the previous week's reading was revised up by 1,000 to 225,000. The four-week moving average came in at 224,250, showing an increase of 5,750 from the prior average, which had been adjusted upwards by 250. Notably, weekly unadjusted claims jumped by 99,140 to a total of 310,366. Seasonally adjusted continuing claims totaled 1.89 million for the week ended Nov.
30, narrowly exceeding the Bloomberg consensus of 1.88 million. Continuing claims increased by 15,000 from the previous week's unrevised figure. The four-week moving average for continuing claims hit 1.89 million, remaining at its highest level since Nov. 27, 2021, and reflecting an increase of 3,500 from the prior week's revised average, as noted by the Department of Labor. Wisconsin experienced the highest increase in initial claims for the week ended Nov.
30, with 1,785 claims, followed by North Dakota with 1,004 and Kentucky with 731. The most significant decrease in claims was observed in California, where claims fell by 10,113, followed by Texas and Florida. "Continued claims remain elevated in states that have suffered recent layoffs or were most impacted by the early fall hurricanes," noted Nancy Vanden Houten, lead economist at Oxford Economics, in remarks emailed to MT Newswires.
"The elevated level of continued claims is consistent with other data showing that unemployed workers are finding it more difficult to find new jobs." Last week, the Bureau of Labor Statistics reported that the US economy added 227,000 nonfarm jobs in November, surpassing Wall Street's expectations.
The unemployment rate edged up to 4.2% from 4.1% month to month. The market is almost fully pricing in another 25-basis-point interest rate cut by the Federal Reserve next week, according to the CME FedWatch tool..