In the week ending February 15, the advance figure for seasonally adjusted initial claims was 219,000, an increase of 5,000 from the adjusted level for the previous week. The previous week’s level was revised up by 1,000 from 213,000 to 214,000. The 4-week moving average was 215,250, down 1,000 from the previous week’s revised average. The previous week’s average was revised up by 250 from 216,000 to 216,250.
The seasonally adjusted insured unemployment rate was 1.2 percent for the week ending Feb. 8, unchanged from the previous week’s unadjusted rate. The advance number of seasonally adjusted insured unemployment during the week ending February 8 was 1,869,000, an increase of 24,000 over the revised level of the previous week. The previous week’s level was revised downwards by 5,000 from 1,850,000 to 1,845,000.
The four-week moving average was 1,862,500, down 7,750 from the previous week’s revised average. Previous week’s average was revised downwards by 1,250 from 1,871,500 to 1,870,250.
The number of advances of actual initial claims under the state’s programs, unmodified, was 222,627 in the week ending February 15, a decrease of 10,118 (or -4.3 percent) from the previous week. Seasonal factors were expecting a decrease of 15,416 (or -6.6 percent) from the previous week. There were 199337 initial claims in the comparative week in 2024.
The unpre-adjusted insured unemployment rate was 1.4 percent for the week ended Feb. 8, unchanged from the previous week. The total level of unpre-adjusted insured unemployment in state programs was 2193878, an increase of 6,054 (or 0.3 percent) from the previous week. Seasonal factors were expecting a decrease of 22,136 (or -1.0 percent) from the previous week. A year ago the rate was 1.4 percent and the volume was 2092801.
Ongoing unemployment claims decline in February 2023
Continuous weeks: The total number of continuous weeks claimed for benefits across all programs for the week ending February 1 was 2,219,008, a decrease of 63,324 from the previous week. In contrast, there were 2,171,213 weekly claims filed for benefits across all programs in the corresponding week of 2024.
Extended Benefits: No state ran on the EX program during the week ending February 1.
Former federal civil servants claims: Initial claims for unemployment insurance benefits filed by former federal civil servants totaled 613 in the week ending Feb. 8, an increase of 14 from the previous week. There were also 399 preliminary claims filed by newly demobilized veterans, a decrease of 66 from the previous week.
When unemployment is low, consumers see the economy as strong, which can lead to an increased desire to make large purchases, such as homes and cars.
Continuous weeks for civil servants: 7,110 consecutive weeks were reported by former federal civil servants in the week ending February 1, a decrease of 335 from the previous week. The total number of newly demobilized veterans claiming benefits was 4,405, down 2,023 from the previous week.
Unemployment rates: The highest insured unemployment rates in the week ending February 1 were in the following states:
- New Jersey (2.9%)
- Rhode Island (2.9%)
- Minnesota (2.5%)
- California (2.4%)
- Massachusetts (2.4%)
- Washington (2.4%)
- Illinois (2.3%)
- Montana (2.3%)
- Michigan (2.0%)
- Pennsylvania (2.0%)
Initial Claims Increases and Decreases: The largest increases in initial claims for the week ending February 8 were in the following states:
- California +1,161
- Texas +861
- Florida +816
- Washington +640
- Virginia +596
In contrast, the biggest declines were in New York (-3,013), Pennsylvania (-2,944), Wisconsin (-1,549), Ohio (-1,095) and Illinois (-975).
The Impact of U.S. Jobless Claims on Consumer Behavior and Spending
The unemployment rate greatly affects consumer spending patterns, affecting economic activity in various ways. Here’s how it affects consumer behavior:
- Income levels
Stable employment: A low unemployment rate usually refers to hiring more people, leading to higher levels of overall income. When consumers feel secure in their jobs, they are more likely to spend money on goods and services.
Disposable income: Higher levels of employment increase disposable income, allowing consumers to spend more on discretionary items, such as dining out, travel, and luxury goods.
- Consumer confidence
Psychological effects: The low unemployment rate boosts consumer confidence, as individuals feel more secure about their financial situation and job prospects. This confidence encourages spending.
Recognizing economic health: When unemployment is low, consumers see the economy as strong, which can lead to an increased desire to make large purchases, such as homes and cars.
- Spending on necessities versus discretionary items
Necessities: In times of high unemployment, consumers often prioritize spending on basic goods (such as food and housing) and reduce discretionary spending.
Discretionary spending: The low unemployment rate encourages consumers to spend on non-essential items.
- Use of debt and credit
Borrowing behavior: With a stable labor market, consumers are more likely to take on debt (such as mortgages and personal loans) to finance larger purchases, contributing to overall economic growth.
Credit confidence: A low unemployment rate is often associated with improved credit conditions, making it easier for consumers to access credit and loans.
- Impact on savings
Savings rates: When unemployment is low and incomes are stable, consumers may feel less need to save for emergencies, leading to lower savings rates and increased spending.
Emergency funds: Conversely, during periods of high unemployment, consumers may prioritize building emergency savings and limiting discretionary spending.
