Unemployment claims rise to 240,000, highest since August - Albuquerque Journal

Unemployment claims rise to 240,000, highest since August

WASHINGTON — The number of Americans applying for unemployment benefits rose to the highest level since August but still remains low by historic standards.

The Labor Department reported Wednesday that 240,000 people applied for jobless aid last week, up by 17,000 from the week before. The four-week moving average of claims, which smooths out week-to-week volatility, rose by 5,500 to 226,750.

Applications for unemployment benefits are a proxy for layoffs and the current low levels shows that American workers enjoy extraordinary job security.

But it may not last.

To combat inflation that hit four-decade highs earlier this year, the Federal Reserve has raised its benchmark interest rate six times since March. The housing market has buckled under the strain of mortgage rates that have more than doubled from a year ago. And many economists expect the United States to slip into a recession next year as higher borrowing costs slow economic activity.

But the job market has remained strong. Employers added 261,000 jobs last month and are creating an average of nearly 407,000 a month this year. — on pace to make 2022 the second-best year for hiring (after 2021) in government records going back to 1940. There are nearly two job openings for every unemployed American. The unemployment rate is 3.7%, a couple of ticks above a half-century low.

New weekly applications for unemployment benefits were extremely low early this year — staying below 200,000 for much of February, March and April. They began to tick up in late spring and hit 261,000 in mid-July before trending lower again.

“We expect layoffs to rise as demand softens in response to higher interest rates,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a research report. “However, the move is likely to be gradual given businesses are still struggling with labor shortages and will be reluctant to cut their workforce.”

The Labor Department said Wednesday that 1.55 million people were receiving jobless aid the week that ended Nov. 12, up by 48,000 from the week before.

Home » Business » Most Recent Biz News » Unemployment claims rise to 240,000, highest since August


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
UNM's Anderson School of Management names new interim dean
ABQnews Seeker
Current Dean Mitzi Montoya is departing ... Current Dean Mitzi Montoya is departing for a University of Utah job.
2
Asian shares mostly decline ahead of Fed chair's key ...
Most Recent Biz News
TOKYO (AP) -- Asian shares were ... TOKYO (AP) -- Asian shares were mostly lower Wednesday ahead of a closely watched speech by the Federal Reserve chief that may give clues ...
3
Biden calls on Congress to head off potential rail ...
Most Recent Biz News
OMAHA, Neb. (AP) -- President Joe ... OMAHA, Neb. (AP) -- President Joe Biden on Monday asked Congress to intervene and block a railroad strike before next month's deadline in the ...
4
New Mexico court denies challenge to PRC reforms
ABQnews Seeker
Voter-approved measure repealed direct election of ... Voter-approved measure repealed direct election of commission members
5
Asian shares rise except Japan as markets eye China ...
Most Recent Biz News
Asian shares were mostly higher Tuesday ... Asian shares were mostly higher Tuesday as market jitters declined over protests in China set off by growing public anger over COVID-19 restrictions. Benchmarks ...
6
Do job-seekers still have the upper hand with salary ...
ABQnews Seeker
You are at the mercy of ... You are at the mercy of the market until you can prove you’re worth more
7
A tiny NM-TX border town is raking in recreational ...
ABQnews Seeker
Customers begin lining up on a ... Customers begin lining up on a hot Friday afternoon in mid-October at Ultra Health in Sunland Park. Just a three-minute drive away, others are ...
8
New venture plans to launch technological revolution in ...
ABQnews Seeker
AFF, America's Frontier Fund, aims to ... AFF, America's Frontier Fund, aims to rebuild US technological lead
9
How does someone abandon an investment?
ABQnews Seeker
Q: I acquired a 10% interest ... Q: I acquired a 10% interest in a real estate partnership in 2018. The partnership is a Delaware entity and the property is in ...