US Jobless Claims Tumbled Last Week After Fraud-Inflated Jump

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Economics
Jobs

US Jobless Claims Tumbled Last Week After Fraud-Inflated Jump

• Reversal in Massachusetts helped spur biggest drop since 2021
• Continuing claims edge down in sign of labor-market resilience

ByAugusta Saraiva
May 18, 2023, 12:35 PM UTC Updated on May 18, 2023, 1:45 PM UTC

Applications for US unemployment benefits fell by the most since 2021 after fraudulent claims in at least one state boosted the numbers in previous weeks.

Initial unemployment claims fell by 22,000 to 242,000 in the week ended May 13, Labor Department data showed Thursday. On an unadjusted basis, claims decreased by the most in two months, to 215,810, largely due to a drop in Massachusetts.

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Macro Matters

2 minute read • May 18, 2023 • 9:22 AM EDT • Last Updated an hour ago

US weekly jobless claims fall; labor market still tight

By Lucia Mutikani

Summary
• Weekly jobless claims drop 22,000 to 242,000
• Continuing claims decrease 8,000 to 1.799 million

WASHINGTON, May 18 (Reuters) - The number of Americans filing new claims for jobs benefits fell more than expected last week, with applications in Massachusetts decreasing sharply, suggesting the labor market remains tight.

The steep decline in weekly unemployment claims reported by the Labor Department on Thursday reversed the surge in the prior week, which had boosted them to the highest level since Oct. 30, 2021. That increase was largely blamed on an unusual jump in applications for unemployment insurance in Massachusetts.

The state's Department of Unemployment Assistance said last week it was "experiencing an increase in fraudulent claim activities in which people attempted to gain access to active UI accounts or file new UI claims using stolen personal information so they can fraudulently obtain unemployment benefits."

Initial claims for state unemployment benefits dropped 22,000 to a seasonally adjusted 242,000 for the week ended May 13. Economists polled by Reuters had forecast 254,000 for the latest week.

Unadjusted claims dropped 18,605 to 215,810 last week, with filings in Massachusetts plunging by 14,042. Claims also fell considerably in Missouri and New Jersey, more than offsetting notable increases in Ohio and Illinois.

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