Jobless claims fall, but more federal workers seek aid as government shutdown drags on

The numbers: The number of Americans applying for jobless benefits through state unemployment programs fell slightly in mid-January to a five-week low, though more furloughed federal workers sought temporary financial help.

Initial jobless claims, a rough way to measure layoffs, declined by 3,000 to 213,000 in the seven days ended Jan. 12. Economists polled by MarketWatch had forecast a 220,00 reading.

New claims have fallen to the lowest level since early December and are not far off from the post-recession bottom of 202,000 set last September. That marked a 50-year low.

The more stable monthly average of new claims, meanwhile, slipped by 1,000 to 220,750.

The number of people already collecting unemployment benefits, known as continuing claims, rose by 18,000 to 1.74 million.

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What happened: Claims have continued to recede after a spike in late November and early December that was largely tied to the holiday season. By most measures, the U.S. labor market is the strongest in decades.

The partial government shutdown, however, is putting more stress on federal workers.
Some 10,454 government employees sought benefits through a separate program run by the U.S. government in the week ended Jan 5. That’s up from 4,760 at the end of December and less than 1,000 in the week before Christmas. Normally federal claims are very low.

These workers have to pay the money back if they eventually get reimbursed by the government for time not worked during the shutdown, but the unemployment benefits could help tide them over financially and help them pay their bills until the impasse ends. President Trump signed a bill on Wednesday that affords back pay.

With hundreds of government employees still out of work, federal jobless are likely to continue to rise until the shutdown ends.

Big picture: By most measures, the U.S. labor market is the strongest in decades. Layoffs and unemployment are extremely low, hiring is strong and wages are rising at the fastest pace in years.
Economists say the strong labor market is the nation’s best insurance against the threat of recession.

The U.S. has grown for more than nine and a half years and is on track to set a record for longest expansion ever later this summer.