Weekly applications for unemployment benefits in the US are increasing moderately

Weekly applications for unemployment benefits in the US are increasing moderately

The number of Americans filing new claims for unemployment benefits rose slightly last week, indicating that the workforce remains tight despite aggressive rate increases by the federal government. Federal Reserve to cool the request.

Initial claims for state unemployment benefits rose by 5,000 to a seasonally adjusted 213,000 in the week ended September 17, the report said. Department of work. Economists polled by Reuters had forecast 218,000 claims in the last week.

Data for the previous week was revised to show 5,000 fewer apps than initially reported.

The US central bank raised interest rates by 75 basis points on Wednesday, the third consecutive increase of this size, indicating more significant hikes to come this year. Federal Reserve Chairman, Jerome Powell“There is only modest evidence that the labor market is cooling,” he said, describing it as still “unbalanced”.

Since March, the Federal Reserve has raised the interest rate by three percentage points to its current range of 3.0% to 3.25%.

Economists say companies are hoarding workers after they struggled to hire last year, like covid-19 pandemic Some people have been forced to stop working, in part due to prolonged illness caused by the virus.

At the end of July, there were 11.2 million job vacancies, with two jobs for every unemployed person.

The claims report covered the period during which the government surveyed businesses for the non-farm payroll portion of the September employment report.

Requests fell between the August and September survey periods. Jobs increased by 315,000 jobs last August, and employment is now 240,000 jobs above the pre-pandemic level.

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The number of people receiving benefits after an initial week of aid fell by 22,000 to 1.379 million in the week ended September 10. Next week’s data on so-called continuing claims, a gauge of employment, will shed more light on the job growth picture in September.

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