Initial Claims for State Unemployment Benefits

The Labor Department said initial jobless claims for unemployment benefits declined 12,000 to a seasonally adjusted 260,000 for the week ended Nov. 21. The number of weekly jobless benefits is now nearing a 42-week low, though those numbers are largely fueled by the number of long-term unemployed no longer eligible to file. Economists polled by Reuters had forecast claims falling to 270,000 for the week.

The four-week moving average of claims–which is widely considered to be a better measure of labor market trends as it strips out week-to-week volatility–was unchanged at 271,000 last week. The four-week average of continuing claims rose 8,750 between the October and November survey periods, which indicates the unemployment rate will likely hold steady this month.

Meanwhile, the prior week’s claims were revised up by 1,000 applications than previously reported. Claims have now held below the 300,000 threshold for 38 consecutive weeks, the longest stretch in years, and remain close to levels last seen in the early 1970s. Claims below this level are usually associated with a healthy jobs market.