Jobless claims/ unemployment benefits/ US labor market/ November job growth/ Federal Reserve rate cuts/ WASHINGTON/ Newslooks/ J. Mansour/ Morning Edition/ U.S. applications for unemployment benefits rose by 17,000 last week to 242,000, the highest level in two months but still low by historical standards. Continuing claims also increased to 1.89 million, signaling a cooling labor market. Despite these figures, the job market remains resilient, with November’s robust job growth and falling inflation influencing Federal Reserve policy.
US Jobless Claims Quick Looks
- Latest Claims: 242,000 applications for the week of Dec. 7, up 17,000.
- Continuing Claims: Increased by 15,000 to 1.89 million.
- 4-Week Average: Rose by 6,000 to 224,250, indicating a slight softening trend.
- Job Market Context: November saw 227,000 new jobs added, a strong rebound from October’s low.
- Federal Reserve Outlook: Expected to cut rates again as inflation nears its 2% target.
US Jobless Claims Rise to 2-Month High but Stay Historically Low
Deep Look
The number of Americans applying for unemployment benefits rose to a two-month high last week, reflecting a slight cooling in the U.S. labor market. Applications for jobless benefits increased by 17,000 to 242,000 for the week ending December 7, the Labor Department reported Thursday. This figure surpassed analysts’ expectations of 220,000 but remains low compared to historical averages.
Continuing Claims and Trends
Continuing claims, which track the total number of people receiving unemployment benefits, also rose by 15,000 to 1.89 million for the week of November 30. The four-week moving average, which smooths week-to-week volatility, climbed by 6,000 to 224,250.
These increases suggest a labor market that is gradually softening, though it remains resilient despite elevated interest rates and ongoing economic challenges.
Job Market Resilience
Despite recent upticks in unemployment claims, the broader U.S. job market continues to show strength. November saw employers add a robust 227,000 jobs, rebounding sharply from October’s gain of just 36,000. The October dip was largely attributed to temporary factors such as strikes and hurricanes.
The government also revised its September and October job growth estimates upward by a combined 56,000, further highlighting the labor market’s underlying health.
Federal Reserve Policy and Economic Impacts
The Federal Reserve has closely monitored labor market trends as it adjusts monetary policy. After a series of aggressive rate hikes in 2022 and early 2023 aimed at curbing inflation, the central bank has eased its stance, cutting rates at its last two meetings.
With inflation dropping from a peak above 9% to near the Fed’s 2% target, most economists anticipate another rate cut at the Fed’s final meeting of 2024.
Business Activity and Job Openings
The government recently reported an increase in U.S. job openings, which rose to 7.7 million in October from a three-and-a-half-year low of 7.4 million in September. This rebound indicates that businesses are still seeking workers, even as hiring cools overall.
