Unemployment claims rose to 220,000, and layoffs remain low

Layoffs remain historically low, but other reports show companies are hiring fewer people.

Key details: New unemployment claims rose in the 49 states and territories that report those numbers to the federal government. They only fell in four states.

The increase in most states is likely exaggerated by the Thanksgiving holiday. Many people who have just lost their jobs tend to wait until the following week to apply for benefits.

It appears that the effects of Thanksgiving were also evident in the number of actual claims, that is, before seasonal adjustments. It jumped by about 94,000 to 293,511, recording the highest level since January.

But just a week ago, the total actual claims were less than 200,000.

If the last two weeks are averaged together, actual unemployment claims appear to be in line with the recent trend.

Meanwhile, the number of people receiving unemployment benefits in the United States fell by 64,000 to 1.86 million. However, the gradual rise in so-called continuing claims is a sign that it is taking longer for people to find new jobs.

Economists say unemployment claims tend to fluctuate sharply during the holiday season due to temporary hiring and should be judged with caution.

The Big Picture: It appears that high interest rates have finally slowed the economy and reduced demand for labor. Employment opportunities have steadily declined and companies are not adding as many workers

However, companies are not cutting as many jobs and laying off workers. The economy is likely to avoid problems as long as most people work and unemployment remains low.

Before the report, the Dow Jones Industrial Average (DJIA) rose.
+0.06%
and Standard & Poor’s 500 SPX,
+0.49%
It is scheduled to open in mixed trading on Thursday.