Two weeks ago, the number of Americans filing for unemployment assistance crept to a 10-month high.
Last week, that number dropped back down a little.
According to stastistics released Thursday by the Labor Department, unemployment claims dropped to 238,000 for the week ending June 14. That’s 5,000 fewer than the week before, when they climbed to 243,000, the highest they’d been since last fall.
While the weekly number fell, the four-week average of claimsrose by 5,500 to 232,750. That’s the highest it’s been since September.
Weekly unemployment claims remain at low levels by historical standards, a sign that most Americans enjoy unusual job security. Still, after mostly staying below 220,000 this year, weekly claims have moved up recently, according to a report by The Associated Press.
“Layoffs are still low overall suggesting businesses remain reluctant to reduce headcount in large numbers,’’ Rubeela Farooqi, chief U.S. economist at High Frequency Economics, told the AP. “However, there has been a gradual increase in recent weeks that merits watching for signals about a more material weaking in demand for workers going forward.’’
Nearly 1.83 million people were collecting unemployment benefits the week of June 8, up by 15,000 the week before and the seventh straight weekly uptick.
The U.S. economy and job market have proven remarkably resilient in the face of high interest rates. Employers are adding a strong average of 248,000 jobs a month this year. Unemployment is still low at 4%, according to the AP report.
The Federal Reserve raised its benchmark interest rate 11 times in 2022 and 2023, eventually bringing it to a 23-year high to combat a resurgence in inflation.
