US unemployment claims rose to 218,000 last week amid a downturn in the labor market – Gudstory

Claims for new state unemployment benefits rose by 12,000 last week to 218,000, according to the Labor Department. Economists expect initial claims to rise by 210,000 for the week ending Dec. 23, a Reuters poll showed.

The number of people receiving benefits rose by 14,000 from the previous week, reaching 1.875 million, after a week of aid. Unemployment claims, a measure of hiring, have risen steadily since mid-September, indicating that people who are already out of work may have difficulty finding a job.

The economy added 199,000 new jobs in November, up from 150,000 in October, according to the Labor Department’s nonfarm payrolls report. The unemployment rate also declined marginally from 3.9% to 3.7% compared to the previous month.

Amid slow job growth and soft inflation, the Federal Reserve has left its benchmark interest rate unchanged for three consecutive policy meetings, and economists expect its hike campaign to end.

To curb inflation, the Fed has raised its policy rate by 525 basis points from March 2022 to the current 5.25%-5.50% range.

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Published: 28 Dec 2023, 10:58 PM IST