US Jobless Claims Rise to 218,000, Signaling Labor Market Cooling in Q4
US Jobless Claims Rise to 218,000, Signaling Labor Market Cooling in Q4
The latest data from the Labor Department reveals an increase in US jobless claims, reaching 218,000 last week, signaling a cooling labor market in the final quarter of the year.
According to the Labor Department, new claims for state unemployment benefits saw a rise of 12,000, totaling 218,000. This figure surpassed economists' expectations, as a Reuters poll anticipated an increase to 210,000 initial claims for the week ending December 23.
The number of individuals receiving benefits after one week of aid also saw an uptick of 14,000 compared to the previous week, reaching a total of 1.875 million. This rise in continued unemployment claims, a key indicator of hiring challenges, suggests that individuals already unemployed may be facing difficulties securing new employment opportunities.
In November, the economy saw the addition of 199,000 new jobs, an improvement from the 150,000 reported in October, according to the Labor Department's non-farm payrolls report. Additionally, the unemployment rate experienced a moderate decline from the previous month, dropping from 3.9% to 3.7%.
Against the backdrop of slower job growth and subdued inflation, the Federal Reserve has maintained its benchmark interest rate for three consecutive policy meetings. Economists are now anticipating that the Fed's campaign to raise interest rates may be coming to an end. Since March 2022, the Fed has raised its policy rate by 525 basis points, bringing it to the current range of 5.25%-5.50%, in an effort to mitigate inflationary pressures.