First-time claims for unemployment benefits rose only slightly last week, but that doesn’t necessarily mean it was a good week for the unemployment rate.
Jobless claims rose by 6,000 for the week ending Jan. 18, rising to 223,000, according to statistics released Thursday by the Labor Department. According to a report from The Associated Press, analysts had been expecting some 219,000 new applications.
However, the total number of Americans getting unemployment benefits rose to 1.9 million as of Jan. 11. That’s an increase of 46,000 and represents the highest total since November 2021.
According to the AP report, the rising level of continuing claims, suggests that some who are getting benefits are finding it harder to find new jobs, an indication that demand for workers could be slowing.
The four-week average of continuing claims is about 100,000 higher than it was a year ago.
Earlier this month, the Labor Department reported that job growth in December surged and unemployment fell. Employers added 256,000 jobs last month and the unemployment rate dropped to 4.1%.
The final jobs report of 2024 shows the economy and hiring were able to grow at a solid pace even with interest rates much higher than they were before the pandemic. As a result, the Federal Reserve could be much less likely to cut borrowing costs again in the coming months after issuing three cuts late in 2024, according to the AP report.
