The holiday break in rising jobless claims is over and the lines at the unemployment office are once again growing longer. That’s the message in this morning’s update of new filings for jobless benefits.
Initial claims jumped sharply to 589,000 for the week ended January 17. That matches the level posted for the week through December 20. The bad news is that we’re again at the high point for the cycle so far. Unfortunately, there’s no reason to think that new jobless claims won’t go higher still. Indeed, a reading of other economic statistics far and wide virtually assures that bearish future. Since this data series is considered a “leading” indicator, it also looks like the unemployment rate, which generally lags initial claims, is set to rise further as well.
Adding to the evidence that the momentum in the labor market is still negative, and is likely to remain so for some time, is the latest reading for continuing jobless claims. The update today is through January 10 and relates that we’re now at just over 4.6 million, up 97,000 from the previous week. That puts continuing claims at just under the high for this cycle, set in the week through December 27.