2023-05-11 13:00:00
An indication that high interest rates are beginning to affect the labor market
The number of Americans filing new applications for unemployment benefits last week rose to the highest level since late 2021, which indicates that higher interest rates are beginning to affect the labor market.
The Labor Department said today, Thursday, that new applications for unemployment benefits for the first time rose by 22,000 to a seasonally adjusted level of 264,000 in the week ending May 6, the highest reading since October 2021.
Economists polled by Archyde.com had forecast 245,000 claims in the latest week.
A significant increase in the number of applications is expected during the second half of the year with the cumulative effects of the US Federal Reserve’s rate hikes on the economy.
Claims are still below levels between 270 and 300 thousand, which are the rates that economists consider as an indicator of the deterioration of the labor market.
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