Operational Updates

Weekly unemployment claims fall to 198,000 (SA); continued claims and state-level changes reported

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Key takeaways

  • Seasonally adjusted initial claims for week ending Jan 10: 198,000 (down 9,000 from revised prior week).
  • 4-week moving average of initial claims: 205,000 — the lowest since Jan 20, 2024.
  • Seasonally adjusted insured unemployment for week ending Jan 3: 1,884,000 (down 19,000); insured unemployment rate: 1.2% (unchanged).
  • Unadjusted initial claims (week ending Jan 10): 330,684, up 31,984 (10.7%) from previous week; comparable week in 2025: 352,357.
  • Continued weeks claimed across all programs (week ending Dec 27): 2,218,506, an increase of 313,297; no state was on the Extended Benefits program that week.
  • Largest state increases in initial claims (week ending Jan 3): New York (+15,317), Georgia (+5,705), Texas (+5,323), California (+4,300), Oregon (+2,737); largest declines included New Jersey (-4,684) and Missouri (-3,235).
  • Federal program filings: initial claims by former Federal civilian employees = 646 (increase of 170); newly discharged veterans initial claims = 314 (increase of 128).

Follow Up Questions

What exactly is an "initial claim" and why is it considered a leading economic indicator?Expand

An “initial claim” is a first-time application for unemployment insurance benefits filed by a worker after losing a job. Each claim requests that the state determine whether that person is eligible for UI. Initial claims are considered a leading economic indicator because they are reported weekly and reflect very recent layoffs, so they tend to rise or fall before broader labor indicators (like the monthly unemployment rate or payroll jobs) show a turn in the job market or business cycle.

What is the difference between seasonally adjusted (SA) and not seasonally adjusted (NSA) data, and why do they sometimes move in opposite directions?Expand

• Not seasonally adjusted (NSA) data are the raw counts actually reported each week. • Seasonally adjusted (SA) data are statistically modified to remove predictable calendar patterns (like regular holiday layoffs, school-year changes, or weather-related slowdowns) so that underlying trends are easier to see. Because the adjustment removes expected seasonal swings, the SA series can move in a different direction from the NSA series in any given week: if actual layoffs are less than the typical seasonal jump, the NSA number may rise while the SA measure falls, and vice versa.

Why do the reporting weeks differ across metrics (initial claims week ending Jan 10, insured unemployment week ending Jan 3, continued weeks ending Dec 27)?Expand

The weeks differ because each measure is based on a different reference period and processing schedule: • Initial claims: counted for the week workers file first-time claims; this can be compiled quickly, so the latest week (e.g., ending Jan 10) is reported. • Insured unemployment (“continued claims” in the regular state UI program): counted for the week people are collecting benefits (a stock measure), which is available with about a one‑week lag (e.g., week ending Jan 3). • “Continued weeks claimed in all programs”: aggregates data from multiple federal and state programs, some of which report more slowly, so it is typically available only for an earlier week (e.g., week ending Dec 27). These timing lags create the staggered reporting weeks seen in the release.

What do the acronyms UCFE and UCX mean, and who is eligible for those programs?Expand

• UCFE = Unemployment Compensation for Federal Employees. It provides unemployment benefits to eligible former federal civilian employees whose federal wages are used to establish a claim; they must meet essentially the same eligibility rules as regular state UI claimants. • UCX = Unemployment Compensation for Ex‑servicemembers. It provides unemployment benefits to eligible former active‑duty military personnel (and some former NOAA uniformed service members) who were separated under honorable conditions. States administer both programs as agents of the federal government.

What is the Extended Benefits (EB) program and what conditions trigger a state being placed "on" EB?Expand

The Extended Benefits (EB) program is a joint federal–state program that provides extra weeks of unemployment benefits (typically 13, and up to 20 in very severe conditions) to people who have exhausted regular UI when a state is experiencing high unemployment. A state is triggered “on EB” when specific statutory thresholds are met, based on: • the insured unemployment rate (IUR) over the last 13 weeks, and/or • the total unemployment rate (TUR) over the most recent 3 months. The default mandatory trigger is: the 13‑week IUR is at least 5% and at least 120% of the average IUR for the same 13‑week period in each of the two prior years. States can also choose optional triggers, such as an IUR of at least 6% or a TUR of at least 6.5% (with an 8% TUR threshold allowing up to 20 weeks).

What does the "insured unemployment rate" represent and how is the denominator (covered employment) determined?Expand

The insured unemployment rate (IUR) is the percentage of workers covered by the regular state unemployment insurance program who are actually receiving UI benefits. Formally, it is calculated as: • Numerator: the average weekly number of individuals filing for and receiving regular UI benefits (insured unemployed) over a specified period. • Denominator: the average number of “covered” workers—employees whose jobs are subject to state UI payroll taxes—typically measured as average monthly covered employment over the previous 12 months for that state or area. Thus, the IUR shows how many UI‑covered workers are drawing benefits, not the share of the entire labor force that is unemployed.

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