US unemployment applications fall; continuing claims hit highest level since 2021

The number of Americans filing for unemployment benefits fell past week, but nan full number of those collecting benefits roseate to its highest level successful almost 3 years.

The Labor Department reported Thursday that applications for jobless claims fell by by 15,000 to 227,000 for nan week of Oct. 19. That’s little than nan 241,000 analysts forecast.

Weekly applications for jobless benefits are considered a proxy for U.S. layoffs.

Continuing claims, nan full number of Americans collecting jobless benefits, roseate by 28,000 to 1.9 cardinal for nan week of Oct. 12. That's nan astir since November 13, 2021.

The rising level of continuing claims suggests that immoderate who are receiving benefits are uncovering it harder to onshore caller jobs. That could mean that request for workers is waning, moreover arsenic nan system remains strong.

Still, nan four-week mean of continuing claims is only arsenic precocious arsenic it was this summer, and not terribly concerning yet, analysts say.

“The level of continuing claims is rising too, a not-too-alarming motion of a slowing economy, but location is nary motion of a clang successful employment aliases a surge of layoffs,” economists for High Frequency Economics wrote successful a statement to clients. “The labour marketplace is softening but not imploding.”

In consequence to weakening employment information and receding user prices, nan Federal Reserve past period cut its benchmark liking rate by a half of a percent constituent arsenic nan cardinal slope shifted its attraction from taming ostentation toward supporting nan occupation market. The Fed is trying to propulsion disconnected a uncommon “soft landing,” whereby it brings down ostentation without tipping nan system into a recession.

It was nan Fed’s first complaint trim successful 4 years aft a bid of increases starting successful 2022 that pushed nan national costs complaint to a two-decade precocious of 5.3%.

Inflation has retreated steadily, approaching nan Fed’s 2% target and starring Chair Jerome Powell to state precocious that it was mostly nether control.

Earlier this month, nan authorities reported that U.S. ostentation reached its lowest point since February 2021.

During nan first 4 months of 2024, applications for jobless benefits averaged conscionable 213,000 a week earlier rising successful May. They deed 250,000 successful precocious July, supporting nan conception that precocious liking rates were yet cooling a red-hot U.S. occupation market.

In August, nan Labor Department reported that nan U.S. system added 818,000 less jobs from April 2023 done March this twelvemonth than were primitively reported. The revised full was besides considered grounds that nan occupation marketplace has been slowing steadily, compelling nan Fed to commencement cutting liking rates.

Despite immoderate signs of labour marketplace slowing, America’s employers added a amazingly beardown 254,000 jobs successful September, easing immoderate concerns astir a weakening occupation marketplace and suggesting that nan gait of hiring is still coagulated capable to support a increasing economy.

The four-week mean of claims, which softens immoderate of nan play volatility, roseate by 2,000 to 238,500, nan Labor Department said Thursday.