Initial jobless claims is an employment report that measures the number of new jobless claims filed by individuals seeking to receive unemployment benefits. The report, published since 1967, also shows how many unemployed individuals qualify for and are receiving benefits under unemployment insurance.
Initial jobless claims may be contrasted with continuing claims, which measures ongoing unemployment.
KEY TAKEAWAYS
- Initial claims is a government employment report that tallies the number of individuals seeking unemployment benefits for the first time.
- It tracks emerging joblessness on a weekly basis, with reports released at 8:30 a.m. EST on Thursdays.
- When a growing number of people willing to work are unable to find work and must resort to claiming unemployment, it is generally a poor sign for the economy.
- The initial claims number, therefore, is watched closely by financial analysts and investors.
Understanding Initial Claims
The initial claims number is used by policymakers in conjunction with other employment data to determine the strength of the labor market. It is also watched closely by financial analysts because it provides insight into the health of the economy Initial claims typically rise before the economy enters a recession and decline before the economy starts to recover.

Also read: Initial Claims Impact on Financial Markets
Reprinted from Investopedia, the copyright all reserved by the original author.
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