US jobless bump adds weight to Fed view on labour market

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Chairman Jerome Powell last week suggested a slight rise in unemployment could the central bank’s job easier.

| Applications for US unemployment insurance rose slightly and held near the highest level since November, indicating a continued easing in the labour market.

Construction workers in Manhattan. The Fed’s most delicate task is continuing to cool growth without crashing the economy.Continuing claims for state benefits climbed to 1.42 million in the week ended July 23, the highest since early April. The Fed’s most delicate task is continuing to cool growth without crashing the economy, which is already inafter two quarters of slight contraction. However, an official recession has not been called because of the strength of the labour market, among other factors.

Separate data earlier this week showed the number of job openings fell in June to a nine-month low, suggesting tightness in the labour market is easing somewhat amid growing economic pressures.

 

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