The number of Americans filing new claims for unemployment benefits increased more than expected last week, but the labour market remains tight even as demand for labour is cooling amid higher interest rates.
The labour market has been largely resilient, though some cracks are emerging as the Federal Reserve ramps up its monetary policy tightening campaign. The U.S. central bank has hiked its policy rate from near-zero at the beginning of this year to the current range of 3.00 per cent to 3.25 per cent, and last month signalled more large increases were on the way this year.
Employers also announced plans to hire 380,014 workers last month, the smallest September total since 2011. An Institute for Supply Management survey on Wednesday showed a measure of services sector employment surged in September, with several industries reporting labour shortages.