Number of initial jobless claims has risen in the USA
The number of initial applications for unemployment benefits in the USA has risen recently. Last week, 218,000 Americans applied for state support, as the US Department of Labor announced on Thursday. Experts surveyed by the Reuters news agency had expected 220,000, after an upwardly revised 211,000 in the previous week. The less volatile four-week average fell to 220,000, meaning that the critical mark of 270,000 is still a long way off, indicating a negative turnaround in the labor market.
The US Federal Reserve (Fed) is combating inflation with a tight monetary policy. At the same time, it wants to cool down the overheated labor market without stalling the economic engine. After some substantial interest rate hikes, the Fed recently paused twice in a row and left the key monetary policy rate in the range of 5.25 to 5.50 percent. This could remain the case at the last meeting of the current year in December, as traders on the money markets suspect. Fed Director Christopher Waller has already initiated a debate about an interest rate cut in his outlook for the coming year.
- Despite the tight monetary policy implemented by the Fed to combat inflation, the number of initial unemployment benefit applications in the USA has been on the rise in recent weeks.
- The unexpected increase in initial applications for unemployment benefits in the USA last week, with 218,000 Americans seeking state support, could potentially indicate a negative turnaround in the labor market.
- If the rising number of initial unemployment benefit applications in the USA continues, it might impact the unemployment benefit system, especially during the upcoming week.
Source: www.ntv.de
