The slight decline in initial jobless claims suggests that, although the US labor market shows signs of cooling, it remains strong and healthy.
The number of Americans filing new claims for unemployment benefits fell to its lowest level in a month last week, but its highest level in more than three years, reflecting that the unemployed are finding it increasingly difficult to find work. .
Initial claims for state unemployment benefits fell by 1,000, seasonally adjusting to 219,000 for the week ending December 21as reported by the Department of Labor this Thursday. Economists polled by Reuters had forecast 224,000 claims for the latest week.
The number of people receiving benefits after the first week of aid, an indicator of hiring, increased by 46,000, seasonally adjusted to 1,910 millionthe highest level since November 2021, for the week ending December 14, according to the claims report. Economists expected the level of continuing claims to be 1.88 billion.
What does the data mean?
The increase in the level of continuing claims suggests that those receiving benefits are having a harder time getting new jobs. This could indicate that demand for workers is decreasing, although the economy remains strong.
In line, the unemployed wait to enter a job fair at the Metropolitan Pavilion in New York. The destruction of jobs does not abate in the United States and unemployment would reach 10% this year.
In line, the unemployed wait to enter a job fair at the Metropolitan Pavilion in New York. The destruction of jobs does not abate in the United States and unemployment would reach 10% this year.
The four-week average of weekly claims, which smooths out some of the weekly volatility, rose by 1,000, reaching 226,500. Weekly claims for unemployment benefits are considered representative of layoffs in the US.
The labor market has thus shown signs of cooling recently, but remains generally healthy and has held up better than many economists predicted, considering that interest rates have been elevated for years.
The Federal Reserve implemented a series of rate increases in 2022 and 2023 to try to control the highest inflation in four decades that emerged during the US economic recovery after a brief but sharp recession caused by the pandemic.
Source: Ambito
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