The number of initial jobless claims in the United States increased to 223,000, reaching a three-year high.

Data released by the U.S. Department of Labor on Thursday showed that the number of initial claims for unemployment benefits rose to 223,000 in the week ending January 18, higher than the expected 220,000. The number of Americans receiving unemployment benefits climbed to the highest level in over three years. Continuing claims for unemployment benefits surged to 1.9 million, reaching the highest level since November 2021. This indicates that unemployed individuals are taking longer to find new jobs. While the number of initial claims for unemployment benefits remains at a level indicating a healthy labor market, the level of continuing claims for unemployment benefits suggests that more job seekers are facing greater difficulties in finding new work. Economists are closely monitoring the labor market data for the week ending January 18, as it is the week for the survey conducted to prepare the employment report for the month. During this period, a destructive fire broke out in Los Angeles, burning down multiple blocks. Without seasonal adjustments, initial claims for unemployment benefits dropped by approximately 68,000 people last week, marking the largest decline in three years. Four states only provided estimates, including California, where the number of claims spiked significantly in the previous week. Economists suggest that large-scale deportations of immigrants and restrictions on legal immigrants could hinder the labor market. It is not expected for the Federal Reserve to cut interest rates during the policy meeting next week.