Dept. of Labor
Department of Labor

Labor Department: Drop in Unemployment Benefits

The number of Americans filing applications for jobless benefits fell less than expected last week while the four-week moving average of claims rose to its highest level since April, suggesting some loss of momentum in the labor market.

This story by Lucia Mutikani originally appeared in Reuters.

Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 231,000 for the week ended Dec. 1, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. 

Economists polled by Reuters had forecast claims falling to 225,000 in the latest week.

Claims had risen for three straight weeks, touching an eight-month high of 235,000 during the week ended Nov. 24. 

While difficulties adjusting the data around holidays such as Thanksgiving Day could have boosted applications, the trend in claims has softened. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 4,250 to 228,000 last week, the highest level since mid-April. 

Some economists blame the rise on volatility in the financial markets, the fading stimulus from a $1.5 trillion tax cut and the Trump administration’s protectionist trade policy.

Got a news tip? Contact David MacNeal