U.S. Unemployment Claims Surging Than Expected in New York, California – Bloomberg

U.S. unemployment claims last week surpassed market expectations and hit the highest level since December last year. In particular, the number of applications increased sharply in New York and California. The labor market remains tight, but hinted at some softening.

Key Point

Initial unemployment claims for the week ending March 4 increased by 21,000 to 211,000 Exceeds all expectations of surveyed economists Median estimate is 195,000 190,000 last week Number of continuing unemployment insurance beneficiaries (week ending 25 February) increased to 1,718,000 The median estimate compiled by Bloomberg is 1.66 million. Last week revised to 1,649,000 (preliminary figure: 1,655,000) An increase of 69,000 from the previous week is the largest increase since November 2021

The flat four-week moving average of unemployment claims rose to 197,000, the highest since January.

Before seasonal adjustment, the number of applications increased by more than 35,000 to 237,513. California and New York accounted for three-quarters of the increase. The bad weather that hit the Midwest and California may have played a role.

Stephen Stanley, chief U.S. economist at Santander US Capital Markets, said New York City’s school workers (bus drivers and cleaners) negotiated to apply for unemployment benefits during school holidays, which is part of their labor contracts. He pointed out that the fact that the number of applications was included in the policy may have led to an increase in the number of applications.

“This week’s announcement was boosted by New York City’s school holidays,” Stanley said in a report.

See table for detailed statistics.

Original title:US Jobless Claims Jump to 211,000, Led by New York, California

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