Initial jobless claims fall after drop in fake filings in Massachusetts
There is an odd reason that helps explain why jobless claims swung higher in recent weeks. It comes down to Massachusetts, which appeared to have a surge in layoffs that sent applications for unemployment benefits higher.
Yes, but: State officials say it was actually "an increase in fraudulent claim activities."
Driving the news: The latest data suggests the problem has been cleared up. The result is the biggest single-week plunge in unemployment filings since 2021, as Bloomberg points out.
By the numbers: Jobless claims fell by 22,000 to 242,000 last week.
- The prior week's numbers had been heavily boosted by a jump in filings in Massachusetts, which accounted for nearly half of the increase of the (unadjusted) filings across the nation.
The bottom line: The big-picture story about the labor market remains intact: There are still relatively low levels of unemployment filings, and those who have lost work are finding new gigs quickly.