WASHINGTON, Sept 12 (Askume) – The number of new U.S. jobless claims rose slightly last week, showing that layoffs remained low despite a slowdown in the labor market.
The US Labor Department reported on Thursday that initial claims for unemployment benefits rose by 2,000 to a seasonally adjusted 230,000 in the week ended Sept. 7. Economists surveyed by Askume expect 230,000 jobless claims in the latest week.
Last week’s figures also included the Labor Day holiday.
Claim amounts will fluctuate during public holidays. However, the number remains unchanged since retreating from an 11-month high of 250,000 in late July. The slowdown in the labor market is caused by companies reducing hiring as high interest rates reduce demand in the economy.
Government data last week showed non-agricultural wages grew less than expected in August, but the unemployment rate fell to 4.2% from 4.3% in July.
Against the backdrop of a slowing labor market, the Federal Reserve is expected to begin its policy easing cycle next Wednesday, promising to cut interest rates by 25 basis points, as consumer price growth has slowed significantly year-on-year in August, although inflation has stabilized to a certain extent.
The central bank will maintain the overnight benchmark interest rate at the current range of 5.25%-5.50% for one year and raise it by up to 525 basis points in 2022 and 2023.
Reports show that the number of people receiving benefits after the first week of aid, representing appointments, rose by 5,000 in the week ended Aug. 31 to a seasonally adjusted 1.85 million.
So-called continuing claims fell in August after rising in July, to a level last seen in late 2021. The drop is in line with a drop in the unemployment rate last month.
