US Weekly Unemployment Claims Dip as Seasonal Adjustments Revised
Latest labor market report indicates a decrease in initial claims amidst annual adjustment methodology changes
The Bureau of Labor Statistics has reported a decrease in the number of seasonally adjusted initial jobless claims, with figures showing a drop to 224,000 for the week ending March 22, 2025. This reflects a reduction of 1,000 from the previously revised numbers and signifies a slight improvement in the labor market as seasonal adjustments are recalibrated.
Continuing claims for unemployment benefits also showed positive trends, with the insured unemployment rate holding steady at 1.2% for the week ending March 15, 2025. This period saw the seasonally adjusted insured unemployment rate decrease by 25,000 to 1,856,000, and a slight uptick in the four-week moving average to 1,870,000.
Unadjusted data indicated a consistent 1.4% insured unemployment rate, with the total number of insured unemployed individuals in state programs decreasing by 33,342 to 2,084,817. This marks a significant reduction in comparison to both the previous week and the same period in the prior year.
According to the release, the overall number of continued weeks claimed across all programs dropped by 30,148 to 2,152,117 for the week ending March 8, 2025. Notably, no state activated the Extended Benefits program during this timeframe, underscoring the relative stability in current unemployment figures.
In particular, Michigan, Mississippi, and Texas experienced notable increases in initial claims, attributed to layoffs in various sectors such as management, educational services, and healthcare. Conversely, states like California and Illinois reported significant decreases in initial claims, suggesting a recovery in these areas.
The changes in these figures align with the background of annual revisions to the seasonal adjustment factors, an effort to ensure more accurate reflections of labor market conditions, taking into account typical seasonal employment fluctuations.
