In the week ending November 30th, initial jobless claims were at a seasonally adjusted level of 224,000. This represents an increase of 9,000 from the previous week's figure and is worse than forecasts for 215,000.
Here is the opening statement from the Department of Labor:
In the week ending November 30, the advance figure for seasonally adjusted initial claims was 224,000, an increase of 9,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 213,000 to 215,000. The 4-week moving average was 218,250, an increase of 750 from the previous week's revised average. The previous week's average was revised up by 500 from 217,000 to 217,500.
The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending November 23, a decrease of 0.1 percentage point from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 23 was 1,871,000, a decrease of 25,000 from the previous week's revised level. The previous week's level was revised down by 11,000 from 1,907,000 to 1,896,000. The 4-week moving average was 1,884,250, a decrease of 3,250 from the previous week's revised average. The previous week's average was revised down by 2,750 from 1,890,250 to 1,887,500.
Here is a closer look at the series since 2007, with a callout to the past 12 months. The four-week moving average, which gives a clearer sense of the overall trend, is currently at 218,250. This is an increase of 750 from the previous week's figure.
For an even shorter timeline, the chart below shows initial unemployment claims starting in 2022.
As we can see, there's a good bit of volatility in this indicator, which is why the four-week moving average is a more useful number than the weekly data. Here is the complete data series dating back to 1967.
Outside of the COVID spike, initial unemployment claims have never been greater than 700,000 for a given week. With that said, we've adjusted the y-axis on the chart below so that we can get a zoomed in view of the series where the COVID spike isn't as prominent.
Notice the relationship between recessions and the rise in weekly unemployment claims. To no surprise, the 4-week moving average begins to rise at or before the start of a recession and reaches a relative peak at the end of a recession.
The headline unemployment insurance data is seasonally adjusted, as are the charts above. What does the non-seasonally adjusted data look like? See the chart below, which clearly shows the extreme volatility of the non-adjusted data (the green dots). The four-week MA gives an indication of the recurring pattern of seasonal change (note, for example, those regular January spikes).
Again, in this next chart we've adjusted the y-axis to get a zoomed in view of the series where the COVID spike isn't as prominent.
Because of the extreme volatility of the non-adjusted weekly data, we can add a 52-week moving average to give a better sense of the secular trends. The chart below also has a linear regression through the data (red line), which we are currently below.
Here's our list of monthly employment updates:
Job Openings and Labor Turnover Summary (JOLTS)
Full-Time and Part-Time Employment
Unemployment Claims as a Recession Indicator
Five Decades of Middle Class Wages
