Jobless claims rise more than expected, but labor market still tight

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Claims have remained very low, bouncing around in a tight range despite high-profile layoffs in the technology industry.

could make it harder for households and small businesses to access credit, potentially dampening demand for labor.

“Over the last six months, these two industries account for half of the plus 150,000 average overshoot in nonfarm payroll growth relative to its pre-pandemic average pace,” Goldman Sachs economist Spencer Hill said in a note. “We expect slowing job growth in this sector as diminished loan availability dissuades restaurant operators and other smaller businesses from hiring new workers and opening new establishments.

 

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