First-time applications for unemployment benefits rose much more than expected last week, a likely indication of some “noisy” data, but also a potential worrisome hint that cracks may be forming in America’s long-solid labor market.
There were an estimated 242,000 jobless claims filed last week, according to seasonally adjusted data released Thursday by the Department of Labor. That’s an increase of 22,000 from the prior week’s tally and a figure that landed well above economists’ expectations for 220,000 claims.
It’s the largest weekly spike in claims in more than four months and the weekly claims — a proxy for layoffs — are at their highest level since early December, Labor Department data shows.
Initial claims data, while one of the timeliest indicators of labor market health, also can be quite volatile and fluctuate from week to week due to factors such as weather, temporary layoffs, other state-level factors, and holidays.
In addition to last week being a holiday week, a deadly winter storm and frigid cold hit many states.
However, considering that the Trump administration is taking a figurative chainsaw through the employment ranks of the US government, the weekly claims data has risen in importance.