The number of Americans applying for unemployment benefits slipped last week as the U.S. labor market remained resilient. The Labor Department reported Thursday that jobless claims fell by 5,000 to 238,000 from a 10-month high of 243,000 the week before. The four-week average of claims, which evens out weekly ups and downs, rose by 5,500 to 232,750, highest since September.
Quick Read
- US Jobless Claims Decline: The number of Americans applying for unemployment benefits decreased by 5,000 to 238,000 last week, down from a 10-month high of 243,000 the week before.
- Labor Market Resilience: Despite recent fluctuations, jobless claims remain low by historical standards, indicating strong job security for most Americans.
- Four-Week Average: The four-week average of claims rose by 5,500 to 232,750, the highest since September.
- Layoff Trends: Layoffs are still low overall, suggesting businesses are reluctant to reduce headcount significantly, though there has been a gradual increase in recent weeks that may signal a potential weakening in demand for workers.
- Unemployment Benefits: Nearly 1.83 million people were collecting unemployment benefits the week of June 8, up by 15,000 from the previous week, marking the seventh straight weekly increase.
- Economic Resilience: The US economy and job market have been resilient despite high interest rates, with employers adding an average of 248,000 jobs per month this year and unemployment remaining low at 4%.
- Signs of Economic Slowing: Recent data, such as the Commerce Department’s report on retail sales barely growing last month, suggest higher borrowing costs may be starting to impact the economy.
- Federal Reserve’s Actions: The Federal Reserve has raised its benchmark interest rate 11 times in 2022 and 2023 to a 23-year high to combat inflation, which has decreased from a mid-2022 peak of 9.1% but remains above the Fed’s 2% target.
- Future Rate Cuts: Fed policymakers announced they have scaled back their intention to cut rates three times this year, now anticipating only one rate cut.
The Associated Press has the story:
US jobless claims fall to 238,000, remain low by historical standards
Newslooks- WASHINGTON (AP) —
The number of Americans applying for unemployment benefits slipped last week as the U.S. labor market remained resilient. The Labor Department reported Thursday that jobless claims fell by 5,000 to 238,000 from a 10-month high of 243,000 the week before. The four-week average of claims, which evens out weekly ups and downs, rose by 5,500 to 232,750, highest since September.
Weekly unemployment claims — a proxy for layoffs — remain at low levels by historical standards, a sign that most Americans enjoy unusual job security. Still, after mostly staying below 220,000 this year, weekly claims have moved up recently.
“Layoffs are still low overall suggesting businesses remain reluctant to reduce headcount in large numbers,’’ said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “However, there has been a gradual increase in recent weeks that merits watching for signals about a more material weaking in demand for workers going forward.’’
Nearly 1.83 million people were collecting unemployment benefits the week of June 8, up by 15,000 the week before and the seventh straight weekly uptick.
The U.S. economy and job market have proven remarkably resilient in the face of high interest rates. Employers are adding a strong average of 248,000 jobs a month this year. Unemployment is still low at 4%.
But the economy has lately showed signs of slowing, perhaps offering evidence that higher borrowing costs are finally taking a toll. For instance, the Commerce Department reported Tuesday that retail sales barely grew last month.
The Federal Reserve raised its benchmark interest rate 11 times in 2022 and 2023, eventually bringing it to a 23-year high to combat a resurgence in inflation.
Inflation has come down from a mid-2022 peak 9.1% but remains stubbornly above the Fed’s 2% target. Fed policymakers announced last week that they have scaled back their intention to cut the rate three times this year. Now they are anticipating only one rate cut.
