n n n ‘. concat(e. i18n. t(“search. voice. recognition_retry”),’n
More Americans filed for unemployment benefits last week, but enough to prompt considerations about the hard work market or the broader economy.
Jobless claims rose to 218,000 for the week ending Dec. 23, an increase of 12,000 from the previous week, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 250 to 212,000.
Overall, 1.88 million Americans were collecting jobless benefits during the week that ended Dec. 16, an increase of 14,000 from the previous week.
Weekly unemployment claims are a proxy for layoffs. They have remained at extraordinarily low levels in the face of high interest rates.
The Federal Reserve began raising interest rates early last year to try to curb inflation that soared after an unusually strong economic rebound from the 2020 COVID-19 recession. benchmark rate 11 times since March 2022.
Inflation has slowed but remains above the Federal Reserve’s 2% target. The Federal Reserve has left rates unchanged at its last three meetings and is now signaling that it could cut rates three times next year.
When the Fed started raising rates, many economists predicted that the U.S. economy would slide into recession. But the economy and the job market have proven surprisingly resilient. The unemployment rate has come in below 4% for 22 straight months, the longest such streak since the 1960s. Hiring has slowed but remains healthy.
The combination of slowing inflation and low unemployment has raised hopes that the Federal Reserve will achieve what’s known as a soft landing: raising rates enough to reduce costs and trigger a recession.
Matt Ott, Associated Press