ECONOMY
Weekly US Jobless Claims Increase Slightly, But Layoffs Remain Low
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New applications for unemployment benefits rose slightly in the week ending Sept. 30, but the labor market remains resilient amid elevated interest rates.
Jobless claims rose to 207,000 last week, an increase of 2,000 from the prior week’s revised level, the Department of Labor reported Thursday. The four-week moving average for claims fell by 2,500 to 208,750, the agency said.
In total, 1.67 million people collected unemployment benefits in the week that ended Sept. 23, about 5,000 fewer than the previous week, the agency said.
The Federal Reserve last month decided to hold interest rates steady after 18 months of aggressive hikes, citing progress in its battle against inflation.
The central bank maintained the target range for the federal funds rate at 5.25% to 5.5%. In a statement announcing the decision, the Fed said although inflation remains above its target of 2%, job gains have slowed.
Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation, the Fed said in a statement.
Ahead of the Fed’s September meeting, the Bureau of Labor Statistics in August reported consumer prices were up 3.7% year-over-year, above the Fed’s target but down from the 2022 peak of 9.1%.
Nevertheless, layoffs remain low. U.S. employers added 187,000 jobs in August, and unemployment was a relatively low 3.8%. The Labor Department issues the September jobs report on Friday.
The Federal Open Market Committee is scheduled to meet again on Oct. 31, and will be looking at consumer prices and jobs data to determine whether further rate hikes are needed to combat inflation.
“We want to see convincing evidence really that we have reached the appropriate level, and were seeing progress and we welcome that. But, you know, we need to see more progress before well be willing to reach that conclusion,” Federal Reserve Chair Jerome Powell said at a press conference announcing September decision.
TMX contributed to this article.
