Applications for unemployment benefits bounced up to end November, rising from the previous week’s ultra-low 260,000 to 269,000, the Department of Labor reported Thursday morning.
The increase was right in line with the exectations of investors polled by Bloomberg. Claims statistics are adjusted to smooth out seasonal fluctuations.
Despite the tick up in the latest week’s claims number, the monthly average for initial claims fell, by 1,750 to 269,250.
The weekly jobless claims, taken from state unemployment offices, have been among the brightest signs regarding the U.S. economy in recent months, plumbing lows not seen in four decades in recent months.
Fewer applications for benefits is viewed as a sign that layoffs are declining and employment is improving.
There are some indications, however, that the relationship between jobless claims and employment growth may have weakened as the economy recovery has aged. It’s possible that as the jobs market has improved, fewer laid-off workers are bothering to stop by agencies to collect benefits before applying for new jobs.
Nevertheless, Thursday’s numbers will help set expectations for the monthly jobs report scheduled to be released Friday morning.
Analysts expect the jobs report to show just under 200,000 new payroll jobs created in November, fewer than in last month’s blowout but more than enough to keep unemployment falling.
Comments from Federal Reserve officials this week, including from Chairwoman Janet Yellen yesterday, suggest that the central bank is satisfied enough with economic growth throughout the year to tighten monetary policy at its meeting this month barring a major negative surprise in the jobs report.
The Labor Department said that no special factors influenced Thursday’s numbers.
California saw the most notable increase in workers applying for benefits, 7,941. The Midwestern states of Illinois, Minnesota, Iowa, and Wisconsin also saw claims rise.
