US weekly jobless claims rise moderately
THE number of Americans filing new claims for unemployment benefits increased moderately last week as the labour market continues to show few signs of a significant slowdown.
Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 217,000 for the week ended Oct 28, the Labor Department said on Thursday (Nov 2). Economists polled by Reuters had forecast 210,000 claims for the latest week.
Though the labour market is gradually cooling, conditions remain tight, highlighting the economy’s enduring strength. The government reported on Wednesday that there were 1.5 job openings for every unemployed person in September.
The US central bank held interest rates steady on Wednesday, but left the door open to a further increase in borrowing costs in a nod to the economy’s resilience. Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25 per cent to 5.5 per cent range.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, advanced 35,000 to 1.818 million during the week ending Oct 21, the claims report showed. The so-called continuing claims have increased in recent weeks, but economists said that mostly reflected difficulties adjusting the data for seasonal fluctuations rather than a material change in the underlying trend.
Indeed, layoffs remain considerably low. A separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showed US-based employers announced 36,836 job cuts in October, down 22 per cent from September. Planned layoffs were up 9 per cent compared with October last year.
The claims report has no bearing on October’s employment report, scheduled for release on Friday, as the data fall outside the survey period.
According to a Reuters survey of economists, non-farm payrolls likely increased by 180,000 last month after rising 336,000 in September. The anticipated step-down in job growth would partly reflect the recently ended strikes by the United Auto Workers (UAW) union against Detroit’s Big Three carmakers.
The government reported last week that there were at least 30,000 UAW members on strike during the period it surveyed business establishments for October’s employment report. REUTERS
Share with us your feedback on BT's products and services
