The US Sees Decrease in Unemployment Insurance Claims, Reaching Lowest Level Since January

The US Department of Labor revealed on September 21 that the number of initial unemployment claims (seasonally adjusted) for the week ending September 16 decreased to 201,000, marking a significant drop of 20,000 from the previous week’s revised figure of 221,000. This figure represents the lowest level since January. Economists surveyed by Reuters had initially predicted 225,000 claims.

“The US labor market continues to exceed expectations,” expressed Eugenio Aleman, chief economist at Raymond James.

However, the unexpected decline in claims can be attributed to the strike staged by the United Auto Workers union (UAW) over labor negotiations with the three major US automakers. This forced the automakers to temporarily lay off employees, resulting in a reduction in claims. There is a possibility that the number of claims could rise in the upcoming weeks.

For now, though, the number of applications for unemployment benefits remains within the lower range observed throughout this year (194,000-265,000), indicating a tight labor market.

The number of pre-adjusted claims saw a modest increase of just 67, reaching 175,661. While Indiana and California experienced a decrease, South Carolina, New York, and Georgia witnessed an increase.

This data aligns with the week during which the government conducted a survey on business establishments to determine the number of non-farm workers for the September US employment statistics. The number of claims has decreased compared to the survey period in August.

In the week ending September 9, the number of individuals receiving continuing unemployment benefits stood at 1,662,000, showcasing a decline of 21,000 from the previous week. This consistent low level further emphasizes the tightness of the labor market.

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The US Department of Labor announced on the 21st that the number of new unemployment insurance claims (seasonally adjusted) for the week ending September 16 was 201,000, down 20,000 from 221,000 the previous week (revised figure). Photograph taken in June 2020 (2023 Reuters/Bryan Woolston)

[ワシントン ２１日 ロイター] – The US Department of Labor announced on the 21st that the number of new unemployment insurance claims for the week ending September 16 (seasonally adjusted) was 201,000, down 20,000 from 221,000 the previous week (revised figure), the lowest level since January. Economists polled by Reuters had forecast 225,000.

“The US labor market continues to outperform expectations,” said Eugenio Aleman, chief economist at Raymond James.

Although the decline was unexpected, the United Auto Workers union (UAW) went on strike due to poor labor negotiations with the Big 3 US automakers, forcing automakers to temporarily lay off workers and file claims. The number of cases may begin to increase in the coming weeks.

For now, however, the number of applications remains near the lower end of this year’s range (194,000-265,000), and the labor market remains tight.

The number of pre-adjusted applications increased by just 67 to 175,661. It decreased in Indiana and California, but increased in South Carolina, New York, and Georgia.

This data coincides with the week the government conducted a survey of business establishments to determine the number of non-farm workers in September US employment statistics. The number of applications has decreased since the August survey period.

The number of continuous recipients for the week ending September 9 was 1,662,000, a decrease of 21,000 from the previous week. It remains at a low level, showing once again that the labor market is still tight.

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