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US weekly jobless claims rose more than expected

Published 05/12/2024, 14:36
© Reuters

Investing.com -- The number of Americans filing for first-time unemployment benefits rose by more than anticipated last week, pointing to a cooling labor market.

Initial jobless claims in the U.S. climbed to 224,000 in the week ended on Nov. 30, a small increase from the revised total of 215,000 in the prior week. Economists had forecast a consensus figure of 215,000.

The number of people receiving benefits after an initial week of aid, known as continuing claims, fell 25,000 to a seasonally adjusted 1.871 million.

Claims have retreated from the near 1-1/2-year high seen in early October, which was the result of hurricanes and major industrial strikes, and are now at levels consistent with low layoffs and a rebound in employment in November. 

The widely-watched monthly jobs report is due on Friday, and economists are expecting the economy to have added 202,000 jobs in November after disruptions from strikes and hurricanes led to weakness in October’s report.

The Federal Reserve kicked off its rate-cutting cycle in September with a jumbo 50-basis-point and followed that up with a 25 bps reduction at the Nov. 6-7 meeting. 

The US central bank is also widely expected to trim interest rates by a further 25 bps later this month.

Fed Chair Jerome Powell said earlier this week that the Fed can take a "little more cautious" approach in cutting rates toward neutral as the economy remains in good shape.

"The economy is stronger than we thought it was going to be in September...the labor market is better, and inflation is coming a little higher," Powell said in what was his final public address ahead of the Fed's Dec. 17-18 meeting.   

 

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