Topline
Applications for unemployment benefits in the U.S. accelerated last week by the most in five years, according to weekly data released Thursday by the Labor Department, which previously reported a three-year low amid persisting concerns about the job market.
Applications for unemployment benefits plummeted to a three-year low the prior week.
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Key Facts
Unemployment benefits applications totaled 236,000 last week, the Labor Department reported, an increase of 44,000 from the revised-up total of 192,000 for the previous week and well above Wall Street’s estimates of 213,000, according to FactSet.
An additional 44,000 applications is the largest single-week jump since March 2020, while the previous week’s total was the lowest since March 2023.
Continuing jobless claims, or the total number of people already receiving benefits, dropped to 1.83 million, down roughly 100 million from the previous week.
Tangent
The Federal Reserve on Wednesday voted to lower interest rates by a quarter-point to a range of 3.5% to 3.75%. Fed Chair Jerome Powell cited a “gradually cooling” job market in the central bank’s decision, adding that Fed officials believe federal data about hiring could be overestimating job creation by up to 60,000 jobs a month. Delayed data released Tuesday indicated the number of job openings rose to 7.67 million in October, well above August’s 7.2 million, and to 7.67 million in September. “We think there’s an overstatement in these numbers,” Powell said, adding, “It’s a complicated, unusual and difficult situation, where the labor market is also under pressure, where job creation may actually be negative.”