Washington. The number of Americans filing new claims for unemployment benefits rose slightly last week, suggesting a still-low level of layoffs despite a slowing labor market.
Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 230,000 in the week ended Sept. 7, in line with forecasts, the Labor Department reported Thursday.
The slowdown in the labor market is due to reduced hiring by companies as rising interest rates curb demand across the economy.
Government data last week showed nonfarm payrolls rose less than expected in August, but the unemployment rate fell to 4.2 percent from 4.3 percent in July.
Against this backdrop of a slowing labour market, the Federal Reserve (Fed) is expected to begin its monetary policy easing cycle next Wednesday, with a quarter-point rate cut guaranteed after the annual increase in consumer prices slowed considerably in August, although some rigidity in inflation remained.
The central bank has kept its benchmark overnight rate at the current range of 5.25-5.5 percent for a year, after raising it by 5.25 points between 2022 and 2023.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, rose by 5,000 to a seasonally adjusted 1.85 million during the week ended Aug. 31, the claims report showed.
#Slight #increase #applications #unemployment #aid
– 2024-09-20 17:35:11
