Applications for US unemployment benefits rose last week, but remained near historic lows, underscoring the enduring resilience of the labor market despite the Federal Reserve’s aggressive efforts to cool demand.
(Bloomberg) — Applications for US unemployment benefits rose last week, but remained near historic lows, underscoring the enduring resilience of the labor market despite the Federal Reserve’s aggressive efforts to cool demand.
Initial unemployment claims increased by 9,000 to 225,000 in the week ended Dec. 24, Labor Department data showed Thursday. That was in line with the median forecast in a Bloomberg survey of economists.
Continuing claims, or the number of people who have already filed an initial application and are now claiming unemployment benefits, rose to 1.7 million in the week ended Dec. 17, the most since early February. The sustained upward trend suggests it’s been more difficult for out-of-work individuals to find new jobs.
The data can be particularly difficult to seasonally adjust around major holidays. The four-week moving average in initial claims, which smooths out some of that week-to-week volatility, was little changed at 221,000.
The Fed has aggressively raised interest rates this year in an effort to tame elevated inflation. While higher borrowing costs have impacted certain parts of the economy, notably housing, the labor market has remained largely resilient throughout 2022.
That’s in part due to a persistent imbalance between labor supply and demand. Though white-collar sectors like banking and technology have seen a wave of layoffs in recent months, industries such as leisure and hospitality are still struggling to fill open positions.
On an unadjusted basis, initial claims rose to 271,590, led by increases in Missouri and Kentucky.
–With assistance from Jordan Yadoo.
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