Jobless claims, released by the U.S. Department of Labor, are the measure of new filings for unemployment benefits by individuals who have recently lost their jobs.

This indicator is primarily composed of initial claims, which represent the number of new filings in a given week, and continuing claims, which count those who have been receiving unemployment benefits for a while.

They’re a crucial part of the labour market’s diagnostic toolkit.

While non-farm payrolls provide a monthly snapshot of job creation and the unemployment rate reflects the percentage of the labor force without a job, jobless claims offer a weekly pulse on layoffs.

A rising trend can dampen consumer confidence and spending, leading to a decrease in business investment and an overall economic slowdown.

Recession Signal

Elevated jobless claims, especially if persistent, may indicate recessionary trends, as companies typically enact layoffs in response to declining business conditions.

While unemployment levels are a lagging indicator, this more granular snapshot is one of the first signs of labour market cooling, which can precede a rise in unemployment.

Track This Yourself

You can find the Jobless Claims chart easily on TradingView: https://www.tradingview.com/chart/v7ZG3yMA/?symbol=ECONOMICS%3AUSIJC