More Americans apply for jobless benefits last week
More Americans filed for unemployment benefits last week, but the labor market remains strong even in the face of persistent inflation and a slowing overall U.S. economy
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.More Americans filed for unemployment benefits last week, but the labor market remains strong even in the face of persistent inflation and a slowing overall U.S. economy.
Jobless claims for the week ending Oct. 1 rose by 29,000 to 219,000, the Labor Department reported Thursday. Last week's number was revised down by 3,000 to 190,000.
The four-week moving average inched up by 250 to 206,500..
The total number of Americans collecting unemployment aid rose by 15,000 to 1.36 million for the week ending Sept. 24.
Applications for jobless aid generally reflect layoffs, which have remained historically low since the initial purge of more than 20 million jobs at the start of the coronavirus pandemic in the spring of 2020.
Recent employment data has indicated that the job market may be cooling slightly, an important consideration for the Federal Reserve when it meets early next month to decide whether or not to raise its main lending rate again.
On Tuesday, the government reported that the number of available jobs in the U.S. plummeted in August compared with July as businesses grow less desperate for workers, a trend that could put a dent in chronically high inflation.
Payroll processor ADP said Wednesday that businesses added 208,000 jobs in September, ahead of analysts’ estimates of 200,000, but below the 250,000 that Wall Street expects the government to report in September jobs data coming Friday. The ADP survey does not always mirror the government's tally.
The Federal Reserve is aiming to bring down inflation by rapidly raising its key interest rate, which is currently in a range of 3% to 3.25%. A little more than six months ago, that rate was near zero. The sharp rate hikes have pushed mortgage rates up to 15-year highs, and made other borrowing costlier. The Fed hopes that higher interest rates will slow borrowing and spending and push inflation closer to its traditional 2% target.
Fed officials are increasingly warning that the unemployment rate will likely have to rise as part of their fight against rising prices. If it remains at or near its current 3.7%, most economists believe it would likely mean more rate hikes from the Fed.
Last week, the government reported that the U.S. economy shrank for the second straight quarter, but so far, that has done little to cool the job market, part of the Fed's inflation-fighting strategy.