Surge of New Applications for Unemployment Benefits May Signal Cooling Job Market

Surge of New Applications for , Unemployment Benefits , May Signal Cooling Job Market.

Last week, the number of people in the United States filing for unemployment benefits reached the highest level in ten months last week.

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ABC reports that the news comes as a potential sign that the U.S. labor market may be slowing under the burden of high interest rates.

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The week ending June 8 saw applications for jobless benefits rise by 13,000 to reach 242,000.

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According to Labor Department data, that is up from 229,000 new applications the week before.

The number also represents the highest number of new applications since August of 2023, while also being significantly higher than the 225,000 new claims forecast.

ABC reports that weekly unemployment claims have lingered at historically low levels since millions of jobs disappeared with the COVID-19 pandemic.

ABC reports that weekly unemployment claims have lingered at historically low levels since millions of jobs disappeared with the COVID-19 pandemic.

Since March of 2022, the Federal Reserve has raised benchmark rates 11 times in an attempt to reign in inflation which has risen to a four-decade high.

While the latest data suggests that consumer inflation cooled in May, the Federal Reserve has decided to leave rates at a 23-year high.

According to Fed Chair Jerome Powell, officials are waiting for more evidence that prices are reaching their target of two percent.

ABC reports that a total of 1.82 million Americans were collecting unemployment benefits in the week ending June 1.

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ABC reports that a total of 1.82 million Americans were collecting unemployment benefits in the week ending June 1.