U.S. initial jobless claims rose by 9,000 to 200,000 in the week ending Nov. 7, according to the Labor Department’s latest report. Continuing claims moved lower, leaving the weekly data with a mixed but still relatively low-level signal about layoffs and workers receiving benefits.

What the weekly claims report shows

The Labor Department said seasonally adjusted initial claims reached 200,000 for the week ended Nov. 7, up from a revised 191,000 the week before. The four-week average, which smooths weekly swings, was unchanged at 195,250.

Continuing claims, which count people still receiving unemployment benefits after an initial week, fell by 20,000 to a seasonally adjusted 1.697 million for the week ended Oct. 31. That figure is reported with a one-week lag. The initial and continuing measures track different stages of unemployment, so their movements can diverge.

A small increase does not establish a new trend

The 9,000 increase in new claims is modest in the context of the recent series. The Associated Press described claims as remaining low by historical standards and layoffs as rare. One week of data cannot establish whether layoffs are accelerating, and claims do not measure every person who is out of work or the unemployment rate.

Claims are one timely indicator that economists follow alongside monthly payroll and unemployment reports. The latest reading comes as markets and policymakers weigh labor conditions against inflation: The Globuzz has also covered the October consumer-price report and Federal Reserve officials’ response to it. The claims report itself does not settle what the Fed will do next.

Sources

Sources: U.S. Department of Labor, Unemployment Insurance Weekly Claims; Associated Press, “US jobless claims tick up to 200,000 but remain low by historic standards”.