Please ensure Javascript is enabled for purposes of website accessibility
Applications for US Unemployment Aid Rose Slightly Last Week
gvw_ap_news
By Associated Press
Published 2 years ago on
December 29, 2022

Share

The number of people seeking unemployment benefits rose only slightly last week with the labor market remaining strong despite the Federal Reserve’s efforts to cool the economy and hiring.

Applications for unemployment aid for the week ending Dec. 24 climbed 9,000 to 225,000, the Labor Department reported Thursday. The four-week average of applications, which smooths out some of the week-to-week swings, slipped just 250 to 221,000.

Unemployment benefit applications are a proxy for layoffs, and are being closely monitored by economists as the Fed has rapidly raised interest rates in an effort to slow job growth and inflation. Should the Fed’s rate hikes cause a recession, as many economists fear, a jump in layoffs and unemployment claims would be an early sign.

So far, the level of jobless claims remains quite low, evidence that Americans are enjoying a high degree of job security. In the coming weeks, thousands of workers with temporary jobs during the winter holidays will lose work and apply for jobless aid. The government seeks to seasonally adjust the data to account for those job losses, but the adjustments are not always perfect and the layoff of temporary workers could distort the data.

The Fed is seeking to slow job growth and the pace of wage increases as part of its efforts to battle inflation. The central bank has hiked rates seven times this year, which has made it more expensive for consumers to take out mortgage and auto loans, and raised borrowing rates for credit cards.

So far, the interest rate increases have pushed mortgage rates above 6%, essentially double what they were before the Fed began tightening credit. Higher mortgage rates have hammered the housing market, with sales of existing homes falling for 10 straight months.

Yet so far there has been only a limited impact on hiring. Employers added 263,000 jobs in November, a healthy gain, and the unemployment rate stayed at a low 3.7%.

RELATED TOPICS:

DON'T MISS

Merced Police Chief: Local Sexual Assault Exams ‘Worth’ Higher Cost

DON'T MISS

Anjelah Johnson-Reyes to Headline Chukchansi’s Summer Series with ‘Family Reunion Tour’

DON'T MISS

Sue or Hold Back? The University of California Does Both as It Faces Trump’s Wrath

DON'T MISS

Central Unified Takes Additional Steps To Protect Undocumented Students

DON'T MISS

Americans Trade Michelin Stars for Mac and Cheese

DON'T MISS

Dueling Protests Clash at Fresno Tesla Dealership

DON'T MISS

Hamas Says It Accepts New Gaza Ceasefire Proposal but Israel Makes Counter-Offer

DON'T MISS

Andrew Tate’s Ex-Girlfriend Accuses Him of Sexual Assault and Battery in New Lawsuit

DON'T MISS

Protesters Rebelling Against Elon Musk’s Purge of US Government Swarm Tesla Showrooms

DON'T MISS

Plastics Are Seeping Into Farm Fields, Food and Eventually Human Bodies

UP NEXT

Protesters Rebelling Against Elon Musk’s Purge of US Government Swarm Tesla Showrooms

UP NEXT

Plastics Are Seeping Into Farm Fields, Food and Eventually Human Bodies

UP NEXT

Elon Musk Sells X to His Own xAI for $33 Billion in All-Stock Deal

UP NEXT

Stock Market Today: Wall Street Slips Following Updates on Inflation and US Shoppers

UP NEXT

US Consumers Remained Cautious About Spending Last Month as Inflation Ticked Higher

UP NEXT

Save More Than $700 per Person With Expert Freezer Hacks

UP NEXT

Trump Trade Policies Have 1 in 4 Companies Reducing Hiring Plans

UP NEXT

US Economy Grew 2.4% in the 4th Quarter After Upgrade in Final Growth Estimate

UP NEXT

US Cities in Trump-Won States Most Vulnerable to Canadian Tariffs, Analysis Finds

UP NEXT

Stock Market Today: Wall Street Drifts as Auto Tariffs Hurt GM, Help Tesla and Others

Central Unified Takes Additional Steps To Protect Undocumented Students

21 hours ago

Americans Trade Michelin Stars for Mac and Cheese

22 hours ago

Dueling Protests Clash at Fresno Tesla Dealership

1 day ago

Hamas Says It Accepts New Gaza Ceasefire Proposal but Israel Makes Counter-Offer

2 days ago

Andrew Tate’s Ex-Girlfriend Accuses Him of Sexual Assault and Battery in New Lawsuit

2 days ago

Protesters Rebelling Against Elon Musk’s Purge of US Government Swarm Tesla Showrooms

2 days ago

Plastics Are Seeping Into Farm Fields, Food and Eventually Human Bodies

2 days ago

Myanmar’s Earthquake Death Toll Jumps to 1,644 as More Bodies Are Recovered From the Rubble

2 days ago

Top Vaccine Official Resigns From FDA, Criticizes RFK Jr. for Promoting Misinformation, Lies

2 days ago

If You Want to Ski Affordably Next Season, Buy Now

2 days ago

Merced Police Chief: Local Sexual Assault Exams ‘Worth’ Higher Cost

Last year, The Merced FOCUS reported that for the first time in over a decade, a crucial service for survivors of sexual assault would be of...

20 hours ago

20 hours ago

Merced Police Chief: Local Sexual Assault Exams ‘Worth’ Higher Cost

20 hours ago

Anjelah Johnson-Reyes to Headline Chukchansi’s Summer Series with ‘Family Reunion Tour’

21 hours ago

Sue or Hold Back? The University of California Does Both as It Faces Trump’s Wrath

21 hours ago

Central Unified Takes Additional Steps To Protect Undocumented Students

22 hours ago

Americans Trade Michelin Stars for Mac and Cheese

1 day ago

Dueling Protests Clash at Fresno Tesla Dealership

2 days ago

Hamas Says It Accepts New Gaza Ceasefire Proposal but Israel Makes Counter-Offer

2 days ago

Andrew Tate’s Ex-Girlfriend Accuses Him of Sexual Assault and Battery in New Lawsuit

Help continue the work that gets you the news that matters most.

Search

Send this to a friend