Jobless claims climb to 245,000, signaling slight cooling in hot labor market

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New jobless claims increased by 5,000 last week and have crept higher this year after touching a 54-year low.

The numbers: The number of Americans who applied for unemployment benefits last week rose by 5,000 to 245,000, pointing to a small erosion in the robust U.S. labor market.

New jobless claims are still very low, but they have risen from fewer than 200,000 in January in a sign the labor market has cooled slightly as higher interest rates dampen U.S. growth. The gradual increase in these so-called continuing claims suggests it’s taking longer for people who lose their jobs to find new ones.

The Federal Reserve wants the labor market to cool even further to temper a sharp increase in wages and help combat high inflation. A series of interest-rate increases by the central bank has slowed the economy and eventually should curb the appetite for workers.

 

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