Jobless claims fall to lowest level since September 2022

The number of Americans making first-time claims for jobless benefits dropped last week to a level not seen since the fall of 2022.

The number of Americans making first-time claims for jobless benefits dropped last week to a level not seen since the fall of 2022. There were an estimated 187,000 initial claims for unemployment insurance during the week that ended January 13, according to Department of Labor data released Thursday. That’s down by 16,000 claims from the week before and marked the lowest level of first-time claims — considered a proxy for layoffs — since September 24, 2022. The week’s total for initial claims — considered a proxy for layoffs — landed far below economists’ projections for 205,000 initial claims, according to FactSet estimates. Weekly claims data can be quite volatile and are frequently revised, and economists caution that some one-off influences — in this case, harsh weather and a new year — could be at play. Still, they also note that despite some broader economic uncertainty, the labor market remains solid. “Most labor market indicators show progress toward a rebalancing in supply and demand, but that is happening without a rise in layoffs,” Matthew Martin, US economist with Oxford Economics, wrote in a note on Thursday. “Though seasonal factors overstate the drop, the low levels of claims suggest vacancies rather than employment continue to bear the burden of softening labor demand.” It’s possible that severe weather across the Great Plains and the Northeast pushed claims lower, according to a note from Ian Shepherdson, Pantheon Macroeconomics’ chief economist.