Jobless claims rise to 213,000 after falling for five consecutive weeks
Number of Americans applying unemployment benefits It rose slightly last week but remained near a four-month low, a sign that the labor market remains in good shape despite an increasingly dark economic outlook.
Figures released Thursday by the Labor Department show that orders for the week ending September 17 rose to 213,000 from the downwardly revised 208,000 recorded in the previous week. That’s still below the pre-pandemic 2019 average of 218,000 claims.
Continuing claims, or the number of Americans receiving unemployment assistance in a row, fell to 1.37 million, down 22,000 from the revised level the previous week. One year ago, approximately 11.25 million Americans were collecting unemployment benefits.
The four-week moving average – which smooths out volatility – is down to 216,750.
The Federal Reserve raises interest rates by 75 basis points for the third straight month
For months, the labor market remained one of the few bright spots in the economy, with the August jobs report showing that employers sent 315,000 new workers last month.
But employment is expected to weaken next month as the Federal Reserve raises interest rates at the fastest pace in three decades in order to tame hyperinflation.
Billionaire David Rubinstein warns inflation will be ‘hard’ for the fund to reduce
Policymakers approved a third consecutive rate hike of 75 basis points on Wednesday and indicated that another increase of that size is up for discussion in November.
Federal Reserve Chairman Jerome Powell told reporters during the press conference following the meeting in Washington that there is no “painless way” to control inflation.
Updated forecasts show officials see the unemployment rate rising to 4.4% by the end of next year, up from the current 3.7%. That’s much higher than in June, when policy makers saw the unemployment rate rise to 3.7%. estimates for Economic growthMeanwhile, it was reduced to 1.2% in 2023 and 1.7% in 2024.
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“The chances of a soft landing will likely diminish to the point where policy needs to be more restrictive or restrictive for longer,” Powell said. “However, we are committed to bringing inflation back to 2%. We believe that failure to restore price stability will mean much more pain.”