States reported that 218,000 workers filed for new unemployment benefits during the week ending Nov. 25, an increase of 7,000 from the previous week’s revised level.
About 1.9 million workers continue to claim unemployment benefits, the highest level in two years. That number had been generally on the rise over the past two months, suggesting unemployed workers are increasingly having a harder time finding new jobs. Demand for workers is falling and the unemployment rate—at 3.9 percent—now stands at the highest level since late 2021.
From January 2022 to October 2023, the unemployment rate drifted between 3.4 percent and 3.8 percent, a historically low range, despite high interest rates and inflation. Labor market conditions remain tight, with 1.5 job openings per every unemployed person. Economists note that the rise in the unemployment rate since April has come mainly from an expansion in the size of the labor force rather than a decline in employment, although it also appears that hiring is dropping off.
