What Happens to Real Effective Exchange Rate When Continuing Jobless Claims Surge?
What happens when continuing unemployment claims surge above 2.0M? Signal that unemployed workers are having trouble finding new jobs.
How Real Effective Exchange Rate Responds
Scenario Background
Continuing jobless claims measure the number of unemployed workers receiving unemployment insurance after their initial claim. Rising continuing claims indicate that people who lost their jobs are struggling to find new ones. This distinguishes between short unemployment spells (quickly re-employed) and prolonged unemployment (harder to reverse economic damage).
Read full scenario analysis →Historical Context
Continuing claims peaked at 23M in May 2020 during the COVID shock before normalizing to 1.7M by 2022. The 2023-2024 period saw continuing claims drifting higher from 1.5M toward 1.9M, reflecting slower re-employment despite stable layoffs. The 2008 crisis saw continuing claims peak at 6.6M. The 2001 recession saw them reach 3.8M. Pre-crisis baselines were historically 2.0-2.5M before 2008.
What to Watch For
- •Continuing claims rising above 2.1M
- •Insured unemployment rate rising above 1.5%
- •Duration of unemployment rising above 22 weeks median
- •Ratio of continuing to initial claims rising above 6
- •Long-term unemployed as share of total exceeding 20%
Other Assets When Continuing Jobless Claims Surge
Other Scenarios Affecting Real Effective Exchange Rate
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