Number of Americans Receiving Unemployment Insurance Reaches 3-Year High

New unemployment insurance data reportedly suggests that the labor market remains solid but that workers who do get laid off are having a harder time finding a new job.

The level for insured unemployment reached its highest level in over three years, the Department of Labor said in a Thursday (Jan. 23) press release.

The number increased by 46,000 during the week ended Jan. 11, reaching 1,899,000, according to the release.

“This is the highest level for insured unemployment since November 13, 2021, when it was 1,974,000,” the release said.

The figure for insured unemployment, also referred to as “continued claims,” includes people who have already filed an initial claim for unemployment benefits, experienced a week of unemployment, and then filed a continued claim, per the release.

The insured unemployment rate remained at 1.2%, unchanged from the previous week, according to the release.

The Department of Labor also reported Thursday that the number of initial claims rose by 6,000 during the week ended Saturday (Jan. 18). The week’s total of 223,000 was up from the previous week’s 217,000, according to the release.

The four-week moving average increased by 750 to reach 213,500, per the release.

The state with the greatest rise in initial claims during the week ended Jan. 11, Michigan, attributed its increase to layoffs in the manufacturing industry.

The state with the greatest decrease, New York, said it had fewer layoffs in three industries: transportation and warehousing, construction, and accommodation and food services, per the release.

The rise in continuing claims reported by the Department of Labor suggests people who are unemployed are having trouble finding a new job, while the number of initial claims remains near the pre-pandemic average and signals a healthy labor market, Bloomberg reported Thursday.

The report added that these numbers tend to be volatile in the first weeks of a new year and noted that the four-week moving average rose only slightly.

Reuters reported Thursday that the numbers show that layoffs remain low, pointing to steady labor market conditions, and that the reduced opportunity for those who have been laid off to find new employment is due to employers being cautious about increasing their headcount.

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