U.S. Jobless Claims Edge Down From Upwardly Revised Level

(RTTNews) - First-time claims for U.S. unemployment benefits slipped from an upwardly revised level in the week ended January 24th, the Labor Department revealed in a report released on Thursday.

The report said initial jobless claims edged down to 209,000, a decrease of 1,000 from the previous week's revised level of 210,000.

Economists had expected jobless claims to rise to 205,000 from the 200,000 originally reported for the previous month.

"Initial jobless claims inched lower in the week ended January 24, reinforcing our baseline forecast that unemployment will edge down over 2025," said Bernard Yaros, Lead U.S. Economist at Oxford Economics.

He added, "Claims lead joblessness by four months, and the latest numbers push back against concerns around high-profile layoff announcements."

Meanwhile, the Labor Department said the less volatile four-week moving average crept up to 206,250, an increase of 2,250 from the previous week's revised average of 204,000.

The report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 38,000 to 1.827 million in the week ended January 17th.

With the decrease, continuing claims dropped to their lowest level since hitting 1.825 million in the week ended September 21, 2024.

The four-week moving average of continuing claims also dipped to 1,867,500, a decrease of 7,250 from the previous week's revised average of 1,874,750.

"Continuing claims, a proxy for hiring, fell to their lowest since September 2024, but remain at levels consistent with a 'low-hire, low-fire' environment that is leading to a bifurcated labor market," said Yaros.

Next Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of January.