Applications for unemployment benefits in the United States continue to remain near a 7-month low, a new report found.
Unemployment Benefit Applications
The number of Americans filing for unemployment benefits dipped slightly last week, with applications falling by 2,000 to a seasonally adjusted 213,000 for the week ending November 23, according to the Labor Department. Revised data showed claims from the prior week were adjusted upward by 2,000 to 215,000.
The total number of Americans receiving unemployment benefits climbed by 9,000 to 1.91 million for the week ending November 16, according to Labor Department data. This marks the highest level of continuing claims since November 13, 2021.
New applications for unemployment aid remain at historically low levels, reflecting a robust labor market. However, a growing number of long-term recipients are struggling to secure new employment, signaling a potential cooling in worker demand even as the broader economy shows resilience.
The four-week moving average of unemployment claims, a metric designed to smooth out fluctuations in weekly data, reached 1.9 million—an increase of 13,500 compared to the previous week's revised figure, according to Labor Department data.
Weekly unemployment claims serve as a key indicator of layoff trends across the United States.
Previous Unemployment Report
For the week ending on November 16, jobless claims dropped by 6,000 to 213,000, which came in below the 220,000 applications that analysts had projected.
Continuing unemployment claims, which measure the number of Americans receiving jobless benefits, climbed by 36,000 to reach 1.91 million during the week of November 9. This figure exceeded expectations and marked the highest level recorded in three years.
The data released last week showed the four-week moving average for weekly unemployment claims, a measure that smooths out fluctuations in the data, dropped by 3,750 to 217,750.
Current State of U.S. Economy
The U.S. economy grew at an annualized rate of 2.8 percent in the third quarter, driven by robust consumer spending and a sharp rise in exports, according to a Commerce Department report released Wednesday. The figure matches the agency's initial estimate of economic growth for the period from July through September.
Amid signs of softening in the job market and easing inflation, the Federal Reserve cut its benchmark interest rate twice in recent months. The Fed made a cut of half a percentage point in September followed by a quarter-point reduction earlier this month.
Despite some cooling inflation, Federal Reserve officials signaled caution during their most recent meeting, emphasizing the risks of lowering interest rates too swiftly. The deliberations have added to the uncertainty surrounding the central bank's next steps.
Many economists anticipate the Federal Reserve will implement its third interest rate cut of the year next month but may pause further reductions in subsequent meetings. Meanwhile, Wall Street remains divided, with CME FedWatch data indicating nearly 50-50 odds for a quarter-point rate cut at the Fed's December meeting.
This article includes reporting from The Associated Press.
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