Recently, the number of new unemployment claims in the US has increased at a faster rate than anticipated.
In the USA, there's been a higher-than-anticipated rise in initial jobless claims. As per the US Labor Department's announcement on Thursday, 229,000 citizens applied for state assistance last week. This surprised economists, who had predicted 220,000 from the previous week (later revised to 221,000). The initial report was for 219,000. The four-week moving average now sits at 222,250.
Friday will see the release of the US federal government's employment report. According to predictions from experts surveyed by Reuters, we can expect continued job growth and about 185,000 new positions in May. In April, 175,000 jobs were created. The US Federal Reserve is making attempts to control inflation and cool down the scorching labor market. Inflation remains persistent and it's likely interest rates on financial markets won't drop for several more months. The European Central Bank, however, just completed their monetary policy U-turn on Thursday.
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The surge in initial applications for unemployment benefits has put pressure on the US labor market. As of last week, a total of 229,000 unemployment benefit claims were made in the USA, exceeding the predicted number by 9,000.
