Jobless claims applications ticked up modestly last week, but the total number of Americans collecting unemployment benefits rose to their highest level in more than three years.
Applications for jobless benefits rose by 6,000 to 223,000 for the week ending January 18, the Labor Department said Thursday.
The total number of Americans receiving unemployment benefits for the week of January 11 climbed by 46,000 to 1.9 million, the most since November of 2021.
The rising level of continuing claims, the total number of Americans collecting jobless benefits, suggests that some who are receiving benefits are finding it harder to land new jobs.
Employers added 256,000 jobs last month and the unemployment rate ticked down to 4.1%.
The number of Americans receiving unemployment benefits increased to its highest level in over three years last week, despite a slight increase in the number of applications for unemployment benefits.
For the week ending January 18, the Labor Department reported on Thursday that 223,000 people had applied for unemployment benefits, an increase of 6,000. Experts anticipated 219,000 new applications.
Weekly unemployment insurance applications are regarded as a stand-in for layoffs.
During the week of January 11, the total number of Americans receiving unemployment benefits increased by 46,000 to 10.9 million, the highest since November 2021.
The increasing number of Americans receiving unemployment benefits, or continuing claims, indicates that some recipients are having difficulty finding new employment. That may indicate that, despite the economy’s continued strength, there is less demand for workers.
Compared to a year ago, the four-week average of continuing claims has increased by roughly 100,000.
Jobs are still plentiful and layoffs are at an all-time low, despite some indications of a weak labor market in 2024.
Earlier this month, the Labor Department announced that unemployment decreased and job growth soared in December. The unemployment rate decreased slightly to 4.1 percent last month as employers added 256,000 new jobs.
The 2024 final jobs report emphasizes that despite interest rates being significantly higher than they were prior to the pandemic, the economy and hiring were still able to grow at a strong rate. Because of this, the Federal Reserve may be much less inclined to lower borrowing costs in the months ahead following its three cuts in late 2024.
The economy is likely to enter a post-COVID era of stable growth, higher interest rates, low unemployment, and slightly higher inflation, according to the strong jobs data overall.
In recent months, a number of well-known companies have announced job cuts, even though layoffs are still healthy by historical standards.
Earlier this month, Facebook parent company Meta announced that it was laying off 5% of its employees, while spirits giant Brown-Forman, which makes Jack Daniel’s, announced that it is cutting its global workforce by roughly 12%.
Layoffs were announced by GM, Boeing, Cargill, and Stellantis in late 2024.
