The number of Americans filing new claims for unemployment benefits rose last week as labor market strength gradually weakened due to expected interest rate hikes that slashed demand in the economy.
First-time applications increased by 13,000 to a seasonally adjusted level of 242,000 in the week ending April 29. Economists had expected 240,000 applications in the most recent week.
Jobless claims remained at the maximum level this year from a range of 194,000 to 247,000, reflecting the increase in layoffs when the cumulative effect of the Fed’s fastest rate hike since the 1980s began to appear in sectors beyond housing and technology. The job market is strong.
A US government report stated that “there were 1.6 jobs available for every unemployed person in March, which is much more than the range between 1.0 and 1.2 jobs,” and economists say it is “consistent with a labor market that does not contribute significantly to inflation.”
The US Federal Reserve raised its key interest rate another 25 basis points to a range of 5% to 5.25% on Wednesday, and signaled it was likely to halt the series of increases, although it remained hawkish.
2023-05-04 14:38:59
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