First-Time Jobless Claims Hit 4-Month High, Up 19,000 To 316,000

The number of Americans filing first-time jobless claims for benefits last week increased to the highest level since early September, exceeding 300,000.

The Labor Department said on Thursday that weekly jobless claims for state unemployment benefits rose by 19,000 to a seasonally adjusted 316,000 for the week ended Jan. 10, while the prior week’s data was once again revised to show 3,000 more claims received than previously reported.

Economists polled by Reuters had forecast claims falling to 291,000 last week.

The four-week moving average of claims — which is considered a better measure of labor market trends as it irons out week-to-week volatility — increased by 6,750 to just under 300,00, up to 298,000 last week.

Though it has remained below the pivotal 300,000 for 18 weeks, a strengthening labor market it is not. Though employment gains have exceeded 200,000 in each of the last 11 months, which is the longest stretch since 1994, part-time jobs, zero wage growth, low participation and employment-population ratios continue to plague the American people.

Still, nearly 3 million new jobs were created last year, which is the strongest increase in one year since 1999. However, in the Reagan recovery, one month alone created 1 million jobs, which paid more in a far smaller workforce.

The claims report showed the number of people still receiving benefits after an initial week of aid fell by 51,000 to 2.42 million in the week ended Jan. 3, as more and more Americans find long-term unemployment shrinking the eligibility number.