Benefits applications increased slightly, while the number of continuing claims reached its highest point in two years
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| Benefits applications increased slightly, while the number of continuing claims reached its highest point in two years |
In 2021 and 2022, hiring slowed dramatically as the economy emerged from the COVID-19 slump.
Less job openings are being posted by employers as well.
Last week, a little increase in the number of Americans filing for unemployment benefits contributed to the highest level of benefits recipients in the US in the last two years.
The Labor Department said on Thursday that applications for unemployment benefits increased by 7,000 to 218,000 in the week ending Nov. 25.
But in the week ending November 18, 1.93 million individuals were collecting unemployment benefits—roughly 86,000 higher than the week before and the highest number in two years. Nine out of the previous ten weeks have shown a rise in claims.
Applications for unemployment benefits are seen as a good indicator of how many layoffs occur within a particular week.
According to analysts, the reason for the increase in claims is that many people who were previously jobless are now having trouble obtaining new employment.
Additionally, even though the job market is still robust, some signs of slowing are emerging.
In 2021 and 2022, hiring slowed dramatically as the economy emerged from the COVID-19 slump. In 2021, employers created a record 606,000 jobs monthly, up from around 400,000 jobs monthly in the previous year. Although hiring each month in 2023 is still averaging 239,000, it has dropped to less than 200,000 in three of the last five months.
Less job openings are being posted by employers as well.
The goal of the Federal Reserve's 11 rate hikes through March 2022 is to slow down the economy and reduce inflation, which reached a four-decade high last year. Forecasts that the economy will enter a recession this year were refuted by the employment market and economic growth, which continued to show unexpected resilience.
Inflation has also drastically decreased.
The Federal Reserve's preferred inflation gauge fell last month, according to a Commerce Department report released on Thursday. This is the most recent indication that pricing pressure brought on by rising interest rates and slower economic growth is abating.
September and October saw no change in prices, after a 0.4% rise in September. Prices increased by 3% in October compared to a 3.4% annual pace in September of last year. For nearly two and a half years, this was the lowest inflation rate year over year.
The four-week moving average of unemployment claims applications, which eliminates "some weekly volatility," decreased by 500 to 220,000, according to Labor's jobless statistics released on Thursday.
