Weekly Jobless Claims Rise More Than Expected; Continuing Applications Hit Highest Since November 2021

10:22 AM EDT, 08/21/2025 (MT Newswires) -- Weekly applications for unemployment insurance in the US rose more than expected, while continuing claims reached their highest level since November 2021, government data showed Thursday.

For the week ended Aug. 16, the seasonally adjusted number of initial claims increased to 235,000 from the previous week's unrevised reading of 224,000, according to the Department of Labor said. The consensus was for a smaller gain to a level of 225,000 in a Bloomberg poll.

The four-week moving average totaled 226,250, rising by 4,500 from the prior week's unrevised average. Unadjusted claims declined by 4,470 on a weekly basis to 194,920.

"The latest rise in initial jobless claims hints at some new softening in labor market conditions, but we can't infer anything conclusive from one week's data, particularly in a week when seasonal factors lent an upside bias to the headline figure," Oxford Economics Lead US Economist Nancy Vanden Houten said in remarks emailed to MT Newswires.

Seasonally adjusted continuing claims came in at 1.97 million for the week ended Aug. 9, its highest reading since Nov. 6, 2021, ahead of Wall Street's views for a 1.96 million reading. Continuing claims jumped by 30,000 from the previous week's level, which was revised down by 11,000. The four-week moving average rose by 6,500 to 1.95 million from the prior week's downwardly revised average, according to the DOL.

"Although they bounce around week to week, we think continued claims have probably leveled off," according to Vanden Houten. "They remain elevated and consistent with a slow pace of job creation."

A majority of Federal Reserve officials saw potential inflation pressures outweighing risks to the labor market, minutes of the central bank's July 29-30 meeting showed Wednesday. Policymakers also indicated that it would take time to gain more clarity on the exact impact of tariffs on prices.

Markets are pricing in a roughly 77% probability that the Federal Open Market Committee will reduce interest rates by 25 basis points next month, down from 82% on Wednesday, with the remaining odds in favor of another pause, according to the CME FedWatch tool.

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