Weekly Jobless Claims Near Pandemic Low, Labor Shortages Slow Growth

Last week the number of Americans filing new claims for jobless benefits fell to the lowest level in nearly 18 months further evidence that job growth is being slowed by labor shortages rather than declining demand.

In the week ending September 4, the advance figure for seasonally adjusted initial claims was 310,000, a decrease of 35,000 from the previous week’s revised level.

This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week’s level was revised up by 5,000.

The 4-week moving average  was 339,500, a decrease of 16,750 from the previous week’s revised average. This is the lowest level for this average  since March 14, 2020 when it was 225,500. The previous week’s average was revised up by 1,250.

Economists polled by Reuters forecast 335,000 applications for the latest week, Reuters reports.

The second straight weekly decline comes as filings surged in Louisiana after Hurricane Ida devastated US offshore energy production and knocked off power.

There were also notable claims increases in large states: California, Virginia and Michigan. Those rises were offset by big claims declines in Florida, Georgia, New York, Missouri and Tennessee.

The advance seasonally adjusted insured unemployment rate was 2 percent for the week ending August 28, unchanged from the previous week’s unrevised rate.

The advance number for seasonally adjusted insured unemployment during the week ending August 28 was 2,783,000, a decrease of 22,000 from the previous week’s revised level.

This is the lowest level for insured unemployment since March 14, 2020 when it was 1,770,000. The previous week’s level was revised up 57,000. The 4-week moving average was 2,840,250, a decrease of 29,000 from the previous week’s revised average.

This is the lowest level for this average since March 21, 2020 when it was 2,071,750. The previous week’s average was revised up by 14,250.

The Bureau of Labor Statistics yesterday reported a record number of job openings, further pointing to labor shortages as a cause for slower job growth.