Jobless claims rise slightly to 230K as employment market continues to cool

The number of Americans filing new applications for unemployment benefits last week rose slightly to 230,000, matching economists’ expectations as the US job market continues to cool.Jobless claims increased by 2,000 in the week ended Sept.7 from 228,000 the week before, according to labor department data.Economists polled by Reuters had forecast a reading of 230,000.The latest jobless claims figures are a positive sign, showing the US labor market is remaining resilient despite a hiring slump.Last week’s data included the Labor Day holiday.Claims tend to be volatile around public holidays.

They have, however, been little changed since dropping from an 11-month high of 250,000 in late July.Government data last week showed nonfarm payrolls increasing by less than expected in August but the unemployment rate falling to 4.2% from 4.3% in July.The Fed’s aggressive post-pandemic interest rate hikes in 2022 and 2023 damped demand, which stunted hiring and led to a labor market slowdown.The central bank has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range for a year, having raised it by 525 basis points in 2022 and 2023.Though economists forecast the US would face a recession after the series of rate hikes, easing inflation has spurred hopes that the Fed will be able to deliver a soft landing.Weakening employment and easing inflation over the past few weeks has fueled investors’ hopes that the Fed will issue a 50-basis point during its meeting cut next week.But higher-than-expected core inflation figures reported Wednesday morning seemingly dashed hopes for the 50-basis point cut — equal to half a percentage point — that traders were vying for versus the more typical 25-basis point cut.Subscribe to our daily Business Report newsletter! Please provide a valid email address.

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