Archive photo, 2010: U.S. Labor Dept., CC BY 2.0, cropped
New applications for U.S. unemployment benefits edged lower last week, a sign that relatively few workers are entering the benefits system even as the figures say little about how easily an unemployed person can find another job.
Seasonally adjusted initial claims fell by 1,000 to 194,000 in the week ended October 24, the Labor Department reported Thursday. The previous week’s figure was revised up by 1,000 to 195,000.
What the numbers mean for a household
Initial claims count applications for unemployment benefits after a job separation. They provide a timely measure of emerging unemployment, not a count of job openings or a guarantee that an individual worker’s paycheck is secure.
For a family relying on wage income to pay rent, groceries and other bills, the distinction matters: fewer new claims do not show that employers are hiring faster or that a person who loses work will quickly replace that income. The weekly report also does not measure wage growth or changes in living costs.
The four-week average, which reduces some of the volatility in the weekly figures, declined by 1,250 to 196,750.
Continuing claims also declined
The number of seasonally adjusted continuing claims fell by 21,000 to 1,701,000 in the week ended October 17. That series runs a week behind initial claims. Its four-week average increased by 500 to 1,710,000.
Continuing claims measure weeks of unemployment benefits claimed under regular state programs. A decline is not a direct measure of people finding jobs: the report does not say why each person stopped claiming benefits.
Before seasonal adjustment, initial claims rose by 5,648 to 178,851 in the week ended October 24. The department’s seasonal factors had expected an increase of 6,040. The difference explains why the adjusted headline moved down while the raw count rose.
The figures are advance estimates and can be revised in the following week’s release.
JBizNews Desk | Washington
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