Applications for unemployment aid decrease in the US, but remain at the highest level since 2021

The number of Americans applying for unemployment aid fell last week, although the total number of those receiving benefits rose to its highest level in nearly three years.

The U.S. Department of Labor reported Thursday that claims fell by 15,000 to 227,000 for the week ending Oct. 19. That’s below the 241,000 analysts predicted.

Weekly applications for unemployment aid are considered a reflection of layoffs in the United States.

Continuing claims, the total number of Americans receiving unemployment benefits, increased by 28,000 to 1.9 million during the week of October 12. It is the highest amount since November 13, 2021.

The rising level of continued claims suggests that some of those receiving aid are finding it more difficult to get new jobs. That could mean demand for workers is declining, even as the economy remains strong.

Still, the four-week average of continuing claims is as high as it was in the summer, and not terribly worrying yet, according to analysts.

“The level of continuing claims is also rising, a not-too-alarming sign of a slowing economy, but there are no signs of a plunge in employment or a rise in layoffs,” economists at High Frequency Economics wrote in a note to their clients. “The labor market is weakening but not imploding.”

In response to weakening jobs data and falling consumer prices, the Federal Reserve cut its benchmark interest rate by half a percentage point last month, as the central bank shifted its focus from controlling the inflation to support the labor market. The Fed is trying to achieve a rare “soft landing,” in which it reduces inflation without pushing the economy into a recession.

[Con información de The Associated Press]

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