Unemployment benefits 2024/ US labor market trends/ continuing claims increase/ jobless claims steady/ Federal Reserve rate cuts/ WASHINGTON/ Newslooks/ J. Mansour/ Morning Edition/ New applications for unemployment benefits remained steady at 219,000 last week, below expectations of 223,000. However, continuing claims rose to 1.91 million, the highest level in three years, signaling challenges for job seekers. While the labor market remains resilient amid receding inflation, rising continuing claims may suggest waning demand for workers.
US Unemployment Claims: Quick Looks
- Initial Claims: Fell slightly to 219,000 for the week of Dec. 21, below analysts’ forecast of 223,000.
- Continuing Claims: Increased by 46,000 to 1.91 million for the week of Dec. 14, the highest since November 2021.
- Four-Week Average: Edged up by 1,000 to 226,500.
- Labor Market Context:
- U.S. employers added 227,000 jobs in November, rebounding from 36,000 in October.
- Job openings increased to 7.7 million in October after a low of 7.4 million in September.
US Jobless Claims Steady as Continuing Claims Hit Three-Year High
Deep Look
Jobless Claims Overview
Initial claims for unemployment benefits dipped by 1,000 to 219,000 last week, underscoring a relatively stable labor market. However, continuing claims—representing those still collecting unemployment benefits—rose to 1.91 million, a three-year high. This rise indicates challenges for job seekers in securing new positions.
Labor Market Resilience Amid Economic Shifts
The labor market has shown signs of softening but remains stronger than many analysts predicted given the Federal Reserve’s aggressive rate hikes in 2022 and 2023. The Fed raised rates to curb inflation, which had surged to four-decade highs following the pandemic.
While hiring slowed in October due to strikes and hurricanes, employers rebounded in November, adding 227,000 jobs. Job openings also rose to 7.7 million in October, suggesting businesses are still seeking workers despite a cooling hiring pace.
Fed’s Rate Cuts and Market Impact
The Federal Reserve has cut its benchmark interest rate three times in response to easing inflation. However, inflation remains above the Fed’s 2% target. The Fed surprised markets last week by signaling just two rate cuts in 2025, down from earlier projections of four.
Challenges Ahead
The increase in continuing claims highlights potential challenges for job seekers, as demand for workers may be waning in certain sectors. This trend bears watching as the government prepares to release its December jobs report on Jan. 10.
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