In the week ending September 20, initial claims for unemployment insurance benefits fell to a seasonally adjusted total of 218,000, down 14,000 from the previous week. Looking at the actual levels of initial claims (not seasonally adjusted data), the number dropped to 180,611, a 7.6% decrease from the week before. This level was just below the same period last year, when initial claims reached 181,713. 

Key observations from the week of September 20:

  • Only 13 states saw an increase in the number of initial claims.
  • Montana experienced the largest rise in initial claims submissions, increasing by 19.3%, from 404 claims in the week ending September 13 to 482 in the week ending September 20.
  • Following Montana were Tennessee with an increase of 12.5%, New Jersey (11.7%), Illinois (6.5%), and Idaho (5.4%).
  • In contrast, South Carolina saw the largest decline that week, with initial claims falling by 34.9%.
  • South Carolina was followed by Virginia (-34.5%), Arizona (-31.1%), Texas (-25.2%), and Rhode Island (-20.3%).

 

Recently, the federal government faced significant job losses, impacting workers in the nation’s capital and nearby regions. Weekly data shows initial claims decreased in Maryland, Virginia, and the District of Columbia. However, the four-week average indicates that initial claims remain increasing in all three areas.

NAR monitors the number of initial unemployment claims, which are the new jobless claims filed by U.S. workers seeking benefits. The U.S. Department of Labor issues weekly reports on these claims at both the national and state levels. This data is a useful indicator of new layoffs and can give early signs of changes in the economic cycle.

In addition to initial claims, we monitor changes in continued claims, which represent the number of people still receiving unemployment benefits after filing their first claim. Unlike initial claims, continued claims reveal long-term trends in unemployment. 

The latest data shows a modest increase in continued claims compared to initial claims. In the week ending September 13, continued claims rose by 5.2% year over year, while initial claims grew by 4.5% year over year. Overall, the level of continued claims has been increasing since February 4, 2023. Generally, this data is less volatile from week to week, allowing us to focus on the long-term trends in the labor market.  

The latest jobs report from the Bureau of Labor Statistics showed a weakening job market, prompting the Federal Reserve to make its first federal funds rate cut in September after keeping the rate steady for three quarters of a year. Regarding the housing market, lowering the Fed’s short-term interest rate is expected to reduce mortgage rates. 

To see how unemployment benefits have changed in your market, select a state on the map below: