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03/07/24
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US Jobless Claims Higher as Labor Market Gradually Eases
Last week, initial applications for U.S. unemployment benefits rose, while the number of people on jobless rolls increased further to a 2.5 year high towards the end of last month, consistent with the labor market cooling gradually.
Easing labor market momentum, together with decreasing inflation pressures, keep the Federal Reserve on target to begin cutting interest rates later in the year, with financial markets hoping that the easing cycle may start in Sept.
On Tuesday, Fed Chair Jerome Powell said that although the economy was back on a disinflationary path, stressed policymakers required more data before reducing rates.
On Wednesday, the Labor Department said first-time claims for state unemployment benefits increased by 4K to a seasonally adjusted 238K for the week that ended on June 29. The report was released a day sooner than normal due to Thursday’s Independence Day holiday.
Economists had expected 235K new claims in the latest week. Unadjusted claims increased by 13,049 to 238,149.
There was a jump on 4,509 in New York applications, likely due to school holidays. Notable gains were also reported in Michigan, New Jersey, California, Illinois, Georgia, Kentucky, and Iowa. These more than offset declines in Maryland and Connecticut.
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