U.S. labor market still tight despite continuing claims hitting 10-month high

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The number of Americans filing new claims for jobless benefits increased moderately last week, pointing to a still-tight and strong labor market despite growing fears of a recession as the Federal Reserve fights to dampen demand.

Unadjusted claims jumped 87,113 to 286,436 last week, driven by large increases in California, New York, Georgia and Texas. There were also notable rises in Illinois, Pennsylvania, Indiana, Ohio, New Jersey and Washington state.

Stocks on Wall Street were trading higher. The dollar fell against a basket of currencies. U.S. Treasury yields rose."This might be a sign of a modest easing in the tightness of the labor market and, if it continues, it would sound a cautionary note on the outlook," said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.

Despite the recent steady rise in continuing claims, there has been no significant shift in labor market dynamics. The Fed wants to slow the labor market to cool inflation and has raised its policy rate by 375 basis points this year from near zero to a 3.75%-4.00% range in the fastest rate-hiking cycle since the 1980s.

 

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It seems media has been trying to make a recession happen for over a year now. A boring economy is a healthy economy, but boring doesn't make for many clicks.

10 month AFTER a pandemic where people lost their jobs & businesses! 🤦

But Joe said…..

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