Macro Matters

US weekly jobless claims rise more than expected

Reuters
November 16, 20238:42 AM EST • Updated 10 min ago

WASHINGTON, Nov 16 (Reuters) - The number of Americans filing new claims for unemployment benefits increased more than expected last week, suggesting that labor market conditions continued to ease, which could help the Federal Reserve's fight against inflation.

Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 231,000 for the week ended Nov. 11, the Labor Department said on Thursday. Economists polled by Reuters had forecast 220,000 claims for the latest week.

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The labor market is cooling as higher interest rates curb demand. Job growth slowed in October and the unemployment rate climbed to 3.9%, the highest level since January 2022. With 1.5 job openings per every unemployed person in September, conditions remain fairly tight.

Economists at Goldman Sachs said they did not believe that last month's increase in the jobless rate was a bad omen, noting that the rise in the unemployment rate since April has come entirely from an expansion in the size of the labor force rather than a decline in employment.

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