US unemployment applications held steady last week, but continuing claims reached a three-year high. The number of Americans applying for jobless benefits remained at 219,000, below analyst projections. However, the total number of people collecting benefits increased by 46,000 to 1.91 million, surpassing forecasts and reaching its highest level since November 2021.
The rising continuing claims suggest that some recipients are struggling to find new jobs, which could indicate a weakening job market despite the overall strong economy. The four-week average of weekly claims also rose by 1,000 to 226,500.
Despite the mixed signs, the labor market remains robust and has outperformed economists’ expectations. The Federal Reserve’s decision to cut interest rates for the third time in a row was influenced by declining inflation. However, the Fed still maintains its target rate of 2%.
Recent job opening data suggests that businesses are actively seeking workers, with 7.7 million openings reported in October, up from a three-and-a-half-year low. The strong addition of 227,000 jobs in November also indicates a resilient labor market.
The upcoming December jobs report will provide further insight into the state of the US economy.
Source: https://abcnews.go.com/Business/wireStory/us-applications-unemployment-benefits-hold-steady-continuing-claims-117115315