(Bloomberg) -- Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it is taking longer for out-of-work people to find a job.
Continuing applications, a proxy for the number of people receiving benefits, rose to 1.91 million in the week ended Dec. 14, according to Labor Department data released Thursday. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.
Recurring filings have been gradually trending up this year, consistent with other data showing the unemployed are having a harder time finding work.
Federal Reserve Chair Jerome Powell said last week that the labor market remains “in solid shape,” though policymakers are keeping a close eye for any sign of deterioration. The labor market is cooling, but not in a way that would raise concerns, Powell said at a press briefing following policymakers’ decision to cut interest rates for the third time in three months.
What Bloomberg Economics Says...
“The low level of initial jobless claims this year reflects the low take-up rate of unemployment benefits — due to ineligibility for some persons, and a lack of incentives to apply among those who are eligible. The surge of continuing jobless claims, with laid-off workers facing longer stretches of unemployment, shows the labor market slowing.”
— Eliza Winger, economist
To read the full note, click here
The four-week moving average of new applications, a metric that helps smooth out volatility, rose to 226,500.
Before adjusting for seasonal factors, initial claims rose last week. New Jersey, Connecticut and California registered the biggest increases while Florida, New York and West Virginia saw the largest declines.
--With assistance from Michael Sasso.
(Updates with chart and Bloomberg Economics comment.)
©2024 Bloomberg L.P.