Applications for U.S. unemployment benefits fell last week, consistent with a labor market that remains resilient despite signs of a broader economic slowdown.
Initial jobless claims, a proxy for layoffs, decreased by 16,000 to a seasonally adjusted 225,000 last week, the Labor Department said Thursday. That was near the 2019 weekly average of around 218,000, when the labor market was also robust.
The level of claims remains in line with job growth and low unemployment. Still, several major companies have announced layoffs or hiring freezes in recent months.
This week, CNN said it was laying off employees and
DoorDash Inc.
said it would trim its corporate staffing levels by about 1,250.
AMC Networks Inc.
said in a memo to employees that it plans to lay off about 20% of its U.S. workforce. Other recent layoffs have been concentrated in the technology industry and sectors of the economy sensitive to interest rates such as housing and finance.
It can take several weeks for impacted workers to file a jobless claim. Others may quickly find a new job in a still tight labor market, and forgo making a claim.
The most recent week of data also included the Thanksgiving holiday. Seasonally adjusted claims for unemployment insurance tend to fluctuate more in November and December due to holidays. On an unadjusted basis, claims typically rise late in the year before reaching a peak in early January.
The four-week moving average of weekly claims, which smooths out volatility in the numbers, rose by 1,750 to a seasonally adjusted 228,750 last week from the previous week’s upwardly revised total.
More broadly, the labor market remains on solid footing despite pressure on the economy from high inflation and rising interest rates. Job openings fell to a seasonally adjusted 10.3 million in October, the Labor Department said Wednesday. That was lower than the record 11.9 million openings in March, but above the 7.2 million average in 2019 ahead of the pandemic.
Payroll growth has slowed since the beginning of the year, but monthly job gains remain robust. Employers added 261,000 jobs in October, the smallest gain this year, but a strong number relative to prepandemic trends. Economists estimate the November payroll gain will be even smaller in the Labor Department’s next employment report, to be released Friday.
Continuing claims, which reflect the number of people seeking ongoing unemployment benefits, rose by 57,000 to 1.61 million in the week ended Nov. 19, the seventh consecutive weekly increase. Continuing claims are reported with a week lag.
Write to Bryan Mena at bryan.mena@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8