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13/06/24
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First-Time Jobless Claims in US Rise 242K
Last week, the number of Americans filing for initial unemployment benefits lifted by more than expected, pointing to the labor market cooling.
In the week that ended on June 8, first-time jobless claims in the U.S. rose to 242K, an increase from 229K in the previous week. Economists had expected a figure of 225K.
The 4-week moving average, which smooths out variances in the weekly number, inched up from 222,250 to 227,000.
The labor market in the U.S. had shown indications of easing, possibly giving the U.S. Federal Reserve some space to begin reducing interest rates from record levels, but the jobs report for May at the beginning of the month altered the narrative.
In May, job growth in the U.S. accelerated far more than anticipated, and nonfarm payrolls last month increased by 272K jobs, much more than the forecast of 182K.
At its latest policy meeting which ended on Wednesday, the U.S. central bank did not change interest rates, but officials reduced forecasts for how aggressively they would reduce rates in 2024, from 3 x 25 basis point rate cuts to only one.
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