Unexpected Drop in Jobless Claims Shows Sturdy Job Market

Filings for jobless benefits in the U.S. unexpectedly settled back last week, underscoring a resilient labor market even as the Atlantic hurricane season introduces added volatility to the figures, Labor Department data showed Sept. 14.

Highlights of Jobless Claims for the Week Ended Sept. 9

• Jobless claims decreased by 14,000 to 284,000 (estimated 300,000, range of estimated 240,000 to 465,000).

• Continuing claims dropped by 7,000 to 1.94 million in week ended Sept. 2 (data reported with one-week lag).

• Four-week average of initial claims rose to 263,250 — highest since August 2016 — from 250,250.

Key Takeaways

Applications for unemployment insurance last week were estimated for Florida, Georgia and South Carolina — states that were impacted by Hurricane Irma.

Meanwhile, Texas reported an unadjusted 11,800 decrease in filings, following a Hurricane Harvey-related 51,683 surge in the week ended Sept. 2.

The spike was responsible for breaking total initial claims out of a subdued pattern. Harvey, which made landfall on Aug. 25, and Irma will probably continue to add to the swings in the jobless claims data.

Before the storm-related volatility, the overall labor market had been making progress.

Employers remain averse to firing people as there’s a shortage of qualified workers. That has kept the underlying trend in jobless claims near the lowest level in more than four decades.

Other Details

• Unemployment rate among people eligible for benefits held at 1.4 percent in week ended Sept. 2.

• Claims were also estimated for the Virgin Islands because of Irma.

With assistance by Kristy Scheuble