New unemployment claims fall to 209,000 in largest one-week drop since June

WASHINGTON (CN) — About 24,000 fewer Americans applied for unemployment benefits last week than the week before, signaling a strong job market and an economy trying to put the Covid-19 pandemic in the rearview mirror.

The Department of Labor reported on Wednesday that 209,000 people submitted new jobless claims last week, down from 233,000 the previous week. It’s also 8,000 people less than two weeks ago.

The total is the largest one-week decrease in initial claims since June 24, when the weekly total dropped 29,000.

Applications for unemployment insurance are seen as a key indicator for layoffs as officials monitor both initial and ongoing claims. Overall, 1.84 million Americans were receiving unemployment benefits in the week that ended Nov. 11.

The four-week rolling average of new claims, which helps filter out volatility each week, fell to 220,000.

The data report comes as unemployment rates remain low. The 3.9% rate for October nearly matched the 3.5% unemployment numbers for February 2020. Over the past 20 years, unemployment peaked at 10% in October 2009 and 14.7% in April 2020.

The three states with the largest number of new claims were California with 52,000, Texas at 16,000 and New York with 15,000. Twelve states plus Puerto Rico saw fewer new claims last week compared with the previous week.

Some economic observers have worried job security was going to be compromised as the Federal Reserve consistently raised its benchmark interest rate, doing so 11 times since March 2022 to rein in inflation. 

Despite those measures, hiring has remained at high paces. Employers added 606,000 jobs a month in 2021, setting a record, and another nearly 400,000 jobs last year. So far in 2023, monthly hiring has averaged 239,000, but it appears to be slowing with numbers below 200,000 in three of the last five months.

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