Continuing Unemployment Claims Rise to Highest in Five Months, as Initial Claims Fall
Continuing Unemployment Claims Rise to Highest in Five Months, as Initial Claims Fall

By Bryan Jung

Americans filing continued unemployment claims rose to their highest level in five months, while initial jobless claims fell to their lowest level since June, according to the Labor Department on Sept, 1.

Continuing claims, which run a week behind jobless claims data, rose to 1.44 million on Aug. 20, up 26,000 from the previous week, to levels not seen since April.

The number of Americans filing for jobless benefits for the first time fell, from 237,000 to 232,000, for the week ended Aug. 27.

This was below the Dow Jones estimate of 245,000 and the lowest number of jobless claims since June 25.

“Initial jobless claims edged lower in the last week while continuing claims rose slightly. No signs of a major shift in labor market despite growing layoff announcements,” wrote Kathy Jones, chief fixed income strategist at Charles Schwab Corp. in a tweet.

States like New York, Massachusetts, and Michigan saw the biggest filings in jobless claims, while Connecticut, Missouri, and Oklahoma saw the biggest drop in claims last week.

Meanwhile, the four-week moving average for initial claims, which smooths out weekly volatility, fell from 245,500 to 241,500, a seven-week low.

All of these data come ahead of the awaited Sept. 2 release of the payrolls report for August.

Investors are predicting that job gains in August, which is a normally volatile month for employment figures, will total 318,000 in the payrolls report.

Labor Market Remains Stable for Now

So far, the jobs market remains tight, despite 40-year high rate of inflation and elevated mortgage rates, as hiring demand and consumer spending remain stable, amid worries of a recession.

The U.S. Bureau of Labor Statistics (BLS) report, on Aug. 30, showed that the number of job openings remains relatively stable at 11.2 million positions, with two jobs for every available worker.

Many companies are raising wages and offering bonuses, as they compete for available workers in a tight labor market.

New data from Institute for Supply Management (ISM), released on Sept. 1, showed a spike in manufacturing jobs in August, after three straight months of declines, reinforcing a need for more workers.

However, other companies, such as Walmart and Redfin, are laying off workers or are planning to reduce their workforce, as their respective industries witness profit loss.

ADP’s private sector report, released on Aug. 31, showed that companies added only 132,000 jobs last month, which is well below average, but many economists are convinced that job growth remains solid.

“Our data suggest a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” said Nela Richardson, chief economist at ADP.

ADP also reported that annual pay was up 7.6 percent last month.

The Labor Department said the unit labor costs rose 10.2 percent for the third quarter, while rising 9.3 percent over the last four quarters, the highest level since early 1982.

Inflation and the Federal Reserve

Revised productivity numbers in a separate BLS report from Sept. 1 showed that the decline in productivity in the second quarter was less severe than reported.

Productivity levels showed only a drop of 4.1 percent, which was better than the 4.6 percent from the initial reading.

The Federal Reserve has been attempting to balance the tight jobs market while trying to curtail inflation with a series of hikes in the interest rate, and has raised its policy rate by 225 basis points since March,

However, the aggressive central bank policies have raised the risk of a recession, with few signs that higher borrowing costs have cooled down the demand for more workers.

Several Fed officials recently indicated the rate increases are likely to continue, with another hike expected in September.

Meanwhile, Loretta Mester, president of the Federal Reserve Bank of Cleveland, said that the federal funds rate, the benchmark rate used between banks for overnight lending, will likely rise above 4 percent by early 2023.

“My current view is that it will be necessary to move the fed funds rate up to somewhat above 4 percent by early next year and hold it there,” Mester said during a speech in Dayton, Ohio, on Aug. 31.

“I do not anticipate the Fed cutting the fed funds rate target next year.”

The fed funds rate is also tied to many consumer debt instruments.

Reuters contributed to this report.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Marina Zhang Data from the Centers for Disease Control and Prevention (CDC) showed that vaccinated and boosted people made up most of the COVID-19 deaths in August. Of the… [...]

By Petr Svab Officials from the FBI and the Department of Homeland Security frequently met with major social media companies ahead of the 2020 election and pointed out users and… [...]

By Jack Phillips The campaign of Arizona Republican candidate Kari Lake responded to a district court imposing a fine on her lawyers after filing an election-related lawsuit earlier this year.… [...]

Union workers are lashing out at both political parties and President Joe Biden for the rail legislation signed to prevent a strike, calling the provisions a "slap in the face"… [...]

A former professor at the University of California San Diego said she gave all of her students "A" grades and no homework in a recently unearthed video. [...]

A key Senate vote over whether to provide paid sick leave for rail workers is highlighting a divide within the GOP, a party that has increasingly tried to position itself… [...]

Usually when a person defrauds investors of millions of dollars and launders the funds to personal pet projects, he goes to jail. (See: Bernie Madoff.) But in FTX founder Sam… [...]

Insider documents released on Friday confirm Twitter’s decision to suppress the New York Post’s legitimate reporting about Hunter Biden’s laptop mere weeks before the 2020 presidential election was a political… [...]

It would be easy to laugh in the faces of the ADL people but it's not a joke. Putting out these junk studies has real consequences. [...]

European Commission President Ursula von der Leyen on Sunday said the European Union must act to address “distortions” created by the Biden administration’s Inflation Reduction Act (IRA)—part of Biden’s  “Made… [...]

Seniors have been severely affected by inflation. Most had to cut back on spending and many needed to take “drastic” measures, such as skipping meals, according to a recent survey.… [...]

SIMI VALLEY, Calif.—The United States is at a pivotal point with China and will need military strength to ensure that American values, not Beijing’s, set global norms in the 21st… [...]

Initiative is part of measures agreed between London’s mayor Sadiq Khan and the police force Police officers in schools are to be monitored to see if they are disproportionately targeting… [...]

Exclusive: economic inactivity due to sickness at highest level since records began, with north, Wales and Northern Ireland disproportionately affectedPeople in the UK are getting “sicker and poorer”, with a… [...]

From first to last, the drum beats were relentless from the small section of Senegal supporters. They pounded in the temples of everybody present, creating an oppressive backdrop to this… [...]

Hillsborough, North Carolina – An elderly Home Depot worker died from his injuries a couple months after he was violently shoved to the ground by a thief. Gary Rasor, 83,… [...]

Twitter continues to censor tweets by Kari Lake and other Trump-Endorsed candidates in Arizona for exposing Katie Hobbs and corruption in Arizona’s elections and the courts. The Gateway Pundit reported… [...]

Joe and Dr. Jill hosted a White House reception ahead of the Kennedy Center Honors show in the East Room. Jill Biden wore another ghastly dress Sunday evening at a… [...]

Secret Service Repeatedly Changes Its Story on Hunter Biden Gun Records What is the Secret Service Hiding about Biden Raid on Trump’s Home? Judicial Watch Sues to Find Out! Judicial… [...]

From Fox News: The Secret Service will not say why they changed their position regarding a government watchdog’s records request into Hunter Biden’s gun investigation records. Government watchdog Judicial Watch… [...]

(Washington, DC) – Judicial Watch announced today that the United States Secret Service has repeatedly changed its position about whether it is in possession of records related to the investigation… [...]

USNN2020

USNN World News (USNN) USNN World News Corporation is a media company consisting of a series of sites specializing in the collection, publication and distribution of public opinion information, local,...