In a sign of possible instability in the US labor market, the Bureau of Labor Statistics reported a significant increase in seasonally adjusted initial unemployment claims for the week ending December 7, 2024. The number of claims rose by 17,000, reaching a total of 242,000, marking a substantial rise from the previous week's revised level of 225,000.
The increase in initial jobless claims has pushed the four-week moving average to 224,250, an uptick of 5,750 from the revised average of the previous week. This trend highlights potential seasonal or economic shifts affecting labor market conditions as 2024 comes to a close.
Meanwhile, the advance seasonally adjusted insured unemployment rate has remained steady at 1.2% for the period ending November 30, indicating no immediate change in the broader unemployment rate despite the rise in initial claims.
Unadjusted data from the same period painted a different picture, as initial claims under state programs soared to 310,366, an increase of 99,140 from the prior week. This sharp rise exceeded the expected seasonal factor and could suggest underlying market challenges.
Among states, Wisconsin and North Dakota experienced the most pronounced increases in initial claims, with Wisconsin recording an additional 1,785 claims, primarily due to layoffs in construction and manufacturing. Conversely, California and Texas saw significant declines in claims, with California alone dropping by over 10,000 from the previous week.
The report also highlighted that the total number of continued weeks claimed for benefits across all programs decreased to 1,688,220, reflecting a contraction from the previous week's figures. This decline offers a counter-narrative to the rise in initial claims, suggesting some stabilization in ongoing benefit claims.