U.S. weekly unemployment claims rise, but level still suggests gradual cooling of labour market

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Federal Reserve officials have said they are keenly watching the labour market, aware that waiting too long to cut interest rates could cause serious harm

The number of Americans filing new applications for unemployment benefits rose in the latest week, but the level still suggested a gradual cooling of the labour market remains intact.

The latest data should continue to allay fears that the labour market is rapidly deteriorating, first raised after a much sharper than expected slowdown in job gains in July, which also saw the unemployment rate rise to a post-pandemic high of 4.3 per cent.

 

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