Last week, the number of Americans filing new unemployment claims rose to its highest level in five months, although the underlying trend in claims remained consistent with a continuously deteriorating labor market.
The larger-than-expected spike in initial claims published by the Labor Department on Thursday was most likely due to snowstorms in several portions of the Midwest and Northeast. The data also includes the Presidents’ Day holiday, which may have added some volatility. There were no signs that significant layoffs of federal government employees were increasing claims, although this could change as more workers are sacked in the coming weeks.
The Labor Department reported that initial claims for state unemployment benefits increased by 22,000 to a seasonally adjusted 242,000 in the week ending February 22. This was the most significant gain since October of last year. Reuters polled economists, who expected 221,000 claims in the most recent week.
Unadjusted claims dropped 2,997 to 220,541 last week. California, Kentucky, Texas, Washington state, and Tennessee all experienced severe reductions. They more than countered an increase of 3,731 filings in Massachusetts and 2,055 in Rhode Island. There was also a considerable increase in applications from Illinois.
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