October 2, 2024
Americans Unemployment Claims Rise, But Layoffs Remain Low
Unemployment Claims Rise Slightly as Labor Market Shows Impact of Higher Interest Rates and Fed Rate Cut.
The number of Americans filing for unemployment benefits rose slightly last week, with claims increasing by 6,000 to 225,000 for the week ending September 28, according to the Labor Department. This surpassed analysts’ expectations of 221,000 but remains historically low.
The four-week average, which smooths out volatility, dipped by 750 to 224,250, reflecting steady levels of U.S. layoffs.
Recent data suggests that higher interest rates are starting to impact the labor market. In response, the Federal Reserve recently cut its benchmark interest rate by 50 basis points, aiming for a “soft landing” to lower inflation without triggering a recession.
