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Number of Americans filing for jobless benefits jumps to highest level in 10 months
Though this week’s number seems relatively high, it’s still within a range that reflects a healthy labor market.
Though this week’s number seems relatively high, it’s still within a range that reflects a healthy labor market.
After a miniboom that powered the first quarter of 2024, the labor market cooled in April, reflecting job growth that looked more like the latter half of 2023. April’s job gains were the smallest reported since October.
The job market has remained surprisingly resilient, with the unemployment rate staying below 4% for 23 straight months, the longest such streak since the 1960s.
The four-week moving average, which offers a clearer picture of the trend, was little changed at 212,000 last week, the lowest since late October.
The acceleration in payrolls is at odds with recent reports that have depicted a softer hiring pace, an outcome favored by the Fed as it will help rein in demand and tame price pressures.
The claims are viewed as a proxy for layoffs and remain extraordinarily low by historical standards, signalling that most Americans enjoy unusual job security.
Businesses continue to retain workers despite elevated interest rates meant to cool the economy and labor market.
The U.S. labor market remains strong despite higher interest rates—perhaps too strong for the inflation fighters at the Federal Reserve.
Last month’s job growth marked an increase from July’s revised gain of 157,000, but still pointed to a moderating pace of hiring compared with the sizzling gains of last year and earlier this year.
Economists say that given the difficulties in finding workers during the past two years, businesses will likely hold onto them as long as possible, even if the economy weakens.
Despite the influx of workers, average hourly wages rose 0.4% from June and 4.4% from a year earlier—numbers that were hotter than expected and are likely to worry the Federal Reserve.
While some industries—such as manufacturing, warehousing, and retail—have slowed their hiring in recent months, they aren’t yet cutting jobs in large numbers.
Despite the fastest interest rate hikes since 1989, the unemployment rate has hardly budged, remaining at a historically low 3.6%.
U.S. employers have added a strong 314,000 jobs a month this year, and at 3.7% in May, the unemployment rate is not far off a half-century low.
U.S. employers added a surprising 339,000 jobs last month, well above expectations, painting a mostly encouraging picture of the job market.
The four-week moving average of claims, which flattens some of the week-to-week fluctuations, rose to its highest level since November 2021.
Despite last week’s sharp increase in filings for unemployment aid, some analysts cautioned against concluding that layoffs are picking up across the economy.
The state’s labor force participation rate increased slightly, to 63.6%, in April and remains above the national rate.
Since the pandemic purge of millions of jobs three years ago, the U.S. economy has added jobs at a breakneck pace and Americans have enjoyed unusual job security.
Applications for unemployment benefits climbed to a more than one-year high and wholesale inflation continued to moderate, adding to signs of softening in the economy.