Initial jobless claims for the week ending October 18 reached 232,000. These numbers were not released through the department’s usual weekly report because the government shutdown has paused normal operations, as reported by Bloomberg.
Continuing claims, which reflect how many people are still receiving unemployment benefits, ticked up slightly to 1.957 million, compared with 1.947 million the week before.
Labour Department also did not provide initial claims data for the previous three weeks, leaving an unusual gap in one of the most closely watched indicators of the job market.
Economic data based on less information
With the official weekly release on hold, economists have had to rely on whatever information is still accessible. Unadjusted, state-level jobless claims data have continued to appear online, even during the shutdown.
Seasonal adjustment factors for this period were published earlier in the year.
Using these two sources, analysts have been piecing together rough estimates of how many Americans are filing for unemployment each week.
This method helps provide some clarity, it is far from perfect. Jobless claims are often used as an early signal of changes in the economy, and missing several weeks of standardised federal data has made it harder to understand current labour market conditions.
Impact of government shutdown
Government shutdown has forced many agencies to furlough employees and pause nonessential work. As a result, several major economic indicators were delayed, especially the monthly jobs report from the Bureau of Labor Statistics.
This report is considered one of the most important tools for measuring the health of the US economy. The absence of timely data has worried policymakers and investors who depend on accurate numbers to make decisions, including those related to interest rates.
The uncertainty has pushed many to look at alternative private-sector surveys and unofficial estimates until normal reporting resumes.
The Bureau of Labor Statistics has made one exception, September consumer price index will still be released so that the Social Security Administration can calculate its annual cost-of-living adjustment. Otherwise, many key updates will remain on hold until the shutdown ends.
