WASHINGTON (AP) – The number of Americans applying for unemployment benefits was flat last week, but continuing claims rose to a three-year high.
The Labor Department reported Thursday that unemployment claims for the week ending Dec. 21 fell by 1,000 to 219,000. This is lower than the 223,000 expected by analysts.
Applications continue to be filed, and the total number of Americans receiving unemployment benefits rose by 46,000 to 1.91 million in the week of December 14. This exceeded analysts’ expectations and was the highest since the week of November 13, 2021, when the labor market was still recovering. In the spring of 2020, employment disappeared due to the new coronavirus infection.
The rise in continuing claims suggests that some people on benefits are finding it harder to find new work. This could mean demand for workers is decreasing even though the economy remains strong.
The four-week average of weekly applications increased by 1,000 to 226,500, to reduce weekly fluctuations to some extent.
Weekly claims for unemployment benefits are considered the quintessential layoff in the United States.
The labor market has shown some recent signs of softening, but remains generally healthy and is holding up better than many economists expected, given interest rates have been rising for years. The Federal Reserve has implemented a series of interest rate hikes from 2022 to 2023 in an effort to curb the highest inflation in 40 years as the U.S. economy recovers from a brief but sharp pandemic recession. .
The Fed cut its benchmark interest rate for the third time in a row last week as inflation receded broadly, but it remains above the U.S. central bank’s 2% target. The Fed caught the market by surprise by predicting that it would cut interest rates only two times in 2025, instead of the previously expected four.
Earlier this month, the government reported that U.S. job openings had rebounded from a 3-1/2-year low of 7.4 million in September to 7.7 million in October, despite the cooling in employment. shows that they are still looking for workers.
U.S. employers added 227,000 jobs in November, a significant increase from 36,000 jobs in October, when employers slashed payrolls due to strikes and hurricanes. The government also revised upward its forecast for employment growth rates for September and October by a combined 56,000 jobs.
The government’s December employment statistics will be released on January 10th.
