US applications for jobless claims rise in a labor market that remains very healthy
More Americans filed for jobless claims last week, and while the labor market remains broadly healthy, there have been recent signs that it may finally be cooling
More Americans filed for jobless claims last week and while the labor market remains broadly healthy, there are growing signs that it may finally be cooling.
Applications for unemployment benefits rose by 13,000 to 231,000 for the week ending Nov. 11, the Labor Department reported Thursday. That's the most in three months.
Jobless claim applications are seen as representative of the number of layoffs in a given week.
The Federal Reserve has been tapping the brakes on the economy and the labor market for nearly two years, trying to stem what was the highest inflation in four decades. The central bank raised its benchmark rate 11 times since March of 2022 as part of that effort.
Yet for months it seemed as though the aggressive actions from the Fed had little impact and companies have been forced to pay more to land employees.
Cracks, however, may be starting to show.
Overall, 1.87 million people were collecting unemployment benefits the week that ended Nov. 4, about 32,000 more than the previous week and the most in almost two years. It was the sixth straight week that continuing claims rose.
“Job growth remains strong, and businesses have yet to start reducing their workforce in a significant way,” said Rubeela Farooqi, chief U.S. economist for High Frequency Economics. “But the continuing claims data are pointing to some softening in labor demand, in line with what the Fed wants to see.”
Economists suggest that continuing claims are steadily rising because many of those who are already unemployed may now be having a harder time finding work, an indication
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