Initial claims for unemployment benefits plunged by much more than expected last week, largely reversing the autumn climb that had convinced many that the labor market was softening.
Initial claims fell to 209,000 for the week ended November 18, the lowest level since mid-October. The prior week’s claims were revised up to 233,000 from 231,000.
Economists had expected claims to slip to 225,000. The range of forecasts was narrow, from 224,000 to 226,000, so the sharp drop was far out of the range of expectations.
The four-week moving average was 220,000, a decrease of 750 from the previous week’s revised average. Economists look to the moving average to smooth out week-to-week volatility.
Continuing claims, those made after the first week of benefits, fell to 1,840,000, a decrease of 22,000 from the previous week’s revised level. The previous week’s level was revised down by 3,000 from 1,865,000 to 1,862,000. These are reported with a one-week delay.
