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Initial Jobless Claims & Continued Jobless Claims

Every Thursday morning, the US Dept of Labor releases economic data related to "initial jobless claims" and "continued jobless claims."  Here's a quick primer on what that means and the difference between the two.

Initial Jobless Claims

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  • Definition: This metric counts the number of people who are filing for unemployment benefits for the first time in a given week.  This data is released every Thursday morning.

  • Market Implications: Initial claims are seen as a real-time indicator of layoffs and economic shifts. If initial claims rise, it suggests that more people are losing their jobs, which could indicate a slowing economy. Conversely, a decline in initial claims can signal economic stability or growth, as fewer layoffs suggest businesses are not cutting costs by reducing workforce.

 

Continued Jobless Claims

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  • Definition: Continued claims (or "insured unemployment") measure the total number of people receiving unemployment benefits after filing their initial claim and not yet finding employment. This figure is reported with a one-week lag to initial claims.

  • Market Implications: Continued claims offer a broader view of longer-term unemployment trends. Rising continued claims suggest that laid-off workers are struggling to find new jobs, which could signal prolonged economic weakness. Falling continued claims suggest that people are returning to work, which can be interpreted as a sign of recovery.

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