Initial Unemployment Claims Climb Again, Led By A Rise In Numbers From California

Initial claims for unemployment rose for the third consecutive week as hiring for new jobs remains stagnant, the U.S. Department of Labor reported Thursday.

The weekly unemployment numbers showed that 362,000 new claims were filed last week, exceeding Dow Jones expectations that were closer to 335,000, according to CNBC.

The bulk of these new claims came from California, which saw an increase of 17,978 new unemployment filings last week, ending on Sept. 25.

Last week’s report for initial claims showed the number had reached 351,000 for the week ending on Sept. 18. This was previously reported as the highest number since Aug. 21, before the new data was released for Sept. 25.

Continuing claims for unemployment rose to 2.84 million, an increase of 131,000 from the previous report. The Labor Department's accounting for continuing claims measures the week behind the number for initial claims, so the data released this week is accounting for the week ending on Sept. 18.

The four-week moving average for continuing claims fell to 2.8 million, a 15,750 drop and the lowest since March 14, 2020, when the COVID-19 pandemic was just beginning to grip the nation.

For all the strides the economy has made in recovering from the COVID-19 pandemic, the newest unemployment data suggest there will be struggles ahead in returning to pre-pandemic levels.

The data arrive amid reports of signifcant labor shortages and employer complaints about being unable to find workers. Executives worry that it is more difficult than before the pandemic to add new hires.

Enhanced federal unemployment benefits came to an end on Labor Day, but some states, led by Republican governors, ended these programs early in an unsuccessful bid to boost job growth.