First-time applications for jobless benefits jumped to the highest level in over 12 months, but are still at historically-low levels despite the Federal Reserve’s efforts to slow the economy and cool inflation.
The Labour Department on Thursday reported that initial claims for the week ending on April 8 rose to 239,000, marking an increase of 11,000 applications from the prior week’s unrevised print of 228,000. Last week’s figures are the highest since January 2022, and above the 232,000 forecast by economists. Meanwhile, continuing claims fell from 1.823 million to 1.81 million— the highest level since December 2021.
It appears the job market is finally beginning to soften in light of the Fed’s hawkish policies, but some employers are continuing to hire new workers. Nonfarm payrolls rose by 236,000 last month, bringing the unemployment rate to a near record-low of 3.5%. The Fed forecasts the US unemployment rate will increase to around 4.5% before the end of 2023.
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