Applications for initial US jobless benefits fell by the most since June, suggesting employers are still holding on to workers in a gradually cooling labor market.
Initial claims plunged by 24,000 to 209,000 in the week ending Nov. 18, according to Labor Department data out Wednesday. That was below all estimates in a Bloomberg survey of economists.
Continuing claims, a proxy for the number of people continuously receiving unemployment benefits, eased to 1.84 million in the week ended Nov. 11. That was the first drop in two months.
The jobless claims data tend to be especially choppy toward the end of the year around the holidays. The four-week moving average of initial claims, which smooths out some of that volatility, ticked down to 220,000.
Despite the declines in claims, applications have been generally trending higher. During their meeting earlier this month, Federal Reserve officials said they’re looking for conditions to soften further to achieve their inflation goal, according to minutes released Tuesday.
What Bloomberg Economics Says...
“Atypical retention of workers ahead of the Thanksgiving holiday explains the drop in seasonally adjusted jobless claims. Smoothing over the weekly volatility, the rising trend in continuing claims suggests unemployed workers are finding it increasingly difficult to land new jobs.”
— Stuart Paul. To read the full note, click here
On an unadjusted basis, initial claims climbed to the highest since July, led by California, Oregon and Kentucky. Unadjusted continuing claims rose by the most in four months.
A separate report Wednesday showed that US durable goods orders declined in October by more than expected, suggesting factory production will struggle for traction.
--With assistance from Chris Middleton.
(Adds graphic, Bloomberg Economics comment)
