“Mornings with Maria” panelists react to the better-than-expected December jobs report and detail the likely impact on the labor market and the U.S. economy.
How many Americans are applying? Unemployment benefits It unexpectedly jumped to a 10-month high last week, the latest sign that the labor market is starting to cool on the back of high interest rates.
The figures announced Thursday The Labor Department reported that initial claims for unemployment insurance rose by 13,000 to 242,000 for the week ending June 8, above the pre-pandemic 2019 average of 218,000. This would be the highest level since August 2023.
Continuing claims by Americans who are continuing to receive unemployment benefits also rose to 1.82 million in the week ending June 1, up 30,000 from the previous week.
The number of high-paying jobs is declining
A sign for a job fair stands on Fifth Avenue on September 3, 2021 in New York City. (Reuters/Andrew Kelly/Reuters Photo)
“The sharp increase in initial jobless claims in the first half of June suggests the unemployment rate may continue to trend upward when the next release comes out,” said Bill Adams, chief economist at Comerica Bank. “However, because initial jobless claims fluctuate from month to month, it is too early to interpret this as a sign of overall labor market weakness.”
Weaker than expected data: Federal ReserveThe Fed raised interest rates to their highest levels in two decades in 2022 and 2023 to cool the economy and labor market. Policymakers have signaled they will keep rates high until they are confident high inflation has been overcome.
White-collar workers struggling to find work as labor market slows
Experts say the latest unemployment data could prompt the central bank to continue cutting interest rates in September.
“The latest data makes it a little more likely that the Fed will start cutting rates later this year,” Adams said.
Participants in the Healthcare Careers Fair at Cape Fear Community College on Feb. 28, 2023, in Wilmington, North Carolina. (Alison Joyce/Bloomberg/Getty Images)
The labor market has remained historically tight over the past year, defying economists’ predictions of an economic slowdown. After last year’s torrid run, the labor market is starting to normalize but is still far from resolved, economists say.
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The Labor Department said earlier this month that the economy 272,000 jobs added in MayHowever, the unemployment rate unexpectedly rose to 4%.
