US Continued Unemployment Claims Reach Highest in 3 Years

"Prolonged Unemployment Period... Signs of Labor Market Slowdown"
New Unemployment Claims at 219,000 'Below Expectations'

The number of continuing unemployment claims, which represent claims for unemployment benefits for at least two consecutive weeks, in the United States has reached its highest level in three years, indicating signs of a slowdown in the labor market.

According to the U.S. Department of Labor on the 26th (local time), continuing unemployment claims for the week of December 8-14 totaled 1.91 million. This is an increase of 46,000 claims compared to the revised figure of 1.864 million from the previous week and 11,000 claims above the market forecast of 1.88 million.

This is the highest level in three years and is interpreted as a signal that Americans who recently lost their jobs are taking longer to find new employment.

New unemployment claims for the week of December 15-21 recorded 219,000, a decrease of 1,000 claims compared to the revised figure of 220,000 from the previous week. This was 4,000 claims below the expert forecast of 223,000.

Eliza Winger, an economist at Bloomberg Economics, analyzed, "The surge in continuing unemployment claims is due to the prolonged unemployment period of laid-off workers," adding, "This shows a slowdown in the labor market." She further noted, "The low number of new unemployment claims this year is partly because some are ineligible to apply, and some are eligible but lack the incentive to apply."

Earlier, the U.S. Federal Reserve announced at the Federal Open Market Committee (FOMC) regular meeting held on the 18th that it would slow the pace of interest rate cuts starting next year, while the market is closely watching employment trends along with inflation indicators.