Filings for U.S. unemployment benefits rose by more than forecast to the highest since September 2017 following the federal government shutdown and a holiday that typically coincides with volatility in the data.
Figures released Thursday by the U.S. Labor Department showed jobless claims jumped from a five-decade low to 253,000 in the week ended Jan. 26, exceeding all but one forecast in an economist survey calling for 215,000. The 53,000-unit rise was the most since just after Hurricane Harvey struck Texas in 2017 and lifted the four-week average, a less-volatile measure, to 220,250.
While federal workers’ claims aren’t factored into the headline jobless benefits data, many contractors and businesses were also hit.
Analysts may discount the latest results, as the end of the shutdown could lead to a reversal and because last week included the Martin Luther King Day holiday Jan. 21. Filings tend to show swings around such breaks, and January can be particularly volatile because it follows the holiday season.
Continuing claims, reported with a one-week lag, climbed by 69,000 to 1.782 million in the week ended Jan. 19.
