The number of Americans applying for unemployment benefits last week jumped by the highest level in five months, though layoffs remain historically low as the labor market continues to be largely unaffected by the Federal Reserve’s interest rate hikes.
Applications for jobless claims in the U.S. for the week ending March 4 rose to 211,000, a jump of 21,000 from the previous week, the Labor Department said Thursday. It’s the first time in eight weeks that claims came in above 200,000.
The four-week moving average of claims, which flattens out some of the weekly ups and downs, rose by 4,000 to 197,000, remaining below the 200,000 threshold for the seventh straight week.
Applications for unemployment benefits are considered a proxy for layoffs.
Last month, the Fed raised its main lending rate by 25 basis points, the eighth straight rate hike in its yearlong battle against stubborn inflation. The central bank’s benchmark rate is now in a range of 4.5% to 4.75%, its highest level in 15 years and some analysts are forecasting three or more increases that would push the lower end of that rate to 5.5%.
The Fed’s rate increases are meant to cool the economy, labor market and wages, thereby suppressing prices. But so far, none of those things has happened, at least not to the degree that the central bank had hoped.
