Manpower shortage
The job market remains strong despite the significant increase in unemployment claims. Private sector job openings and wage lists published this week revealed strong demand for labor and increased employment.
In congressional testimony this week, Federal Reserve Chairman Jerome Powell said the central bank could raise interest rates at a faster pace if economic performance data remains strong, though monetary policymakers have yet to make a decision at their next meeting.
Jerome Powell: We haven’t made any decision about accelerating the rate hike
Much of this will depend on the government’s employment report on Friday, which economists believe could tip the scales in favor of a higher interest rate hike. Estimates indicate that the number of employees increased by 225 thousand employees in February, and that the unemployment rate remains at its lowest level in five decades.
The number of jobless claims may fluctuate from one week to the next, especially during the holidays, and these numbers were released close to the “Presidents’ Day” holiday, and the four-week moving average of initial jobless claims, which relatively handles the impact of fluctuations, rose to 197000 demand, the highest level since January.
