Joanie Bily, author of Dive in DEEP, predicts that more companies will invest in AI technology to replace lower-level skilled jobs.
number of Americans applying unemployment benefits is better than last week’s forecast, an early sign that the labor market is starting to soften in the face of rising borrowing costs.
announced numbers Thursday Initial claims for the week ending April 29 reached 242,000, above the 2019 pre-pandemic average of 218,000, according to the Labor Department. This is also above last week’s level, which was revised down slightly to 229,000.
Continuing claims filed by Americans who continue to receive unemployment benefits decreased slightly to 1.8 million in the week ending April 22, down 38,000 from the previous week.
Majority of workers regret leaving during ‘great retirement’
Job seekers will visit our booth during the Spring Job Fair at the Las Vegas Convention Center on Friday, April 15, 2022. ((KM Cannon/Las Vegas Review-Journal)/Getty Images)
For months, the labor market remained strong amid a slowing economy, despite an aggressive campaign by the US government to raise interest rates. Federal Reserve.
But there are signs that it’s starting to cool off.
Layoffs are on the rise and job openings are down. Private sector employment grew at a faster-than-expected pace in April, but unemployment claims have also risen steadily. Economists widely expect unemployment to rise as a result of the sharp rise in interest rates. compulsory consumer Businesses should refrain from spending.
Private sector employment growth unexpectedly jumps to 296,000 in April
of Latest forecast The Fed said officials expected the unemployment rate to rise to 4.6% by the end of next year from 3.5% currently.
This could mean over a million Americans will be out of work between now and the end of the year.
A “Hiring Now” sign at a job fair at Schneider Electric’s manufacturing facility in South Carolina on January 18, 2023. (Photo by Micah Green/Bloomberg via Getty Images / Getty Images)
Policymakers approved the 10th consecutive rate hike on Wednesday, raising the federal funds rate to its highest level since August 2007. However, while Chairman Jerome Powell stressed the importance of economic policy going forward, policymakers also opened the door to a moratorium on tightening at the next meeting. data release.
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Unemployed claims data preceded the release of the more high-profile April jobs report on Friday morning, which is expected to show employers have hired 179,000 workers. increase. 236,000 in March.
The unemployment rate is expected to edge up to 3.6%.
