A female recruiter is interviewing a job candidate using a laptop and reviewing their resume in an office (Olga Rolenko/Getty Images)
By Matt Ott
More Americans applied for unemployment benefits last week, but not enough to raise concern about the labor market or broader economy.
Jobless claims rose to 218,000 for the week ending Dec. 23, an increase of 12,000 from the previous week, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 250 to 212,000.
Overall, 1.88 million Americans were collecting jobless benefits during the week that ended Dec. 16, an increase of 14,000 from the previous week.
Weekly unemployment claims are a proxy for layoffs. They have remained at extraordinarily low levels in the face of high interest rates.
The Federal Reserve started raising interest rates early last year to try to beat down the inflation that surged after an unusually strong economic rebound from the COVID-19 recession of 2020. The Fed has raised its benchmark rate 11 times since March of 2022.
Inflation has eased, but remains slightly above the Fed’s 2% target. The Fed has left rates alone at its last three meetings and is now signaling that it could cut rates three times next year.
When the Fed started raising rates, many economists predicted that the U.S. economy would slide into recession. But the economy and the job market have proven surprisingly resilient. The unemployment rate has come in below 4% for 22 straight months, the longest such streak since the 1960s. Hiring has slowed but remains healthy.
The combination of decelerating inflation and low unemployment has raised hopes that the Fed is managing a so-called soft landing: raising rates just enough to bring down prices without causing a recession.
Cust2Mate is a leading innovator in retail technology, aiming to revolutionize the shopping experience. By implementing smart cart technology, the tech company addresses the issue of theft while enhancing the shopper's journey.
The Biden administration has unveiled a plan, Plan B, to address the student loan debt crisis. It offers to cancel up to $20,000 in interest for borrowers enrolled in income-driven repayment plans. This proposal aims to reset balances for those facing growing debt due to unpaid interest, benefiting low—and middle-income borrowers. An estimated 25 million borrowers are eligible for some form of interest forgiveness.
As we head into the second quarter, there’s an argument in favor of buying Boeing stock. Why? As one expert says, ‘there’s nowhere else to get planes.’
With inflation and prices still on the rise, it might be worth considering a carpool app. One of them, Singapore-based Ryde, just went public in the U.S.
Full Glass Wine Co., the company behind Bright Cellars, Wine Insiders, and Winc, knows you fell in love with home delivery during the pandemic – and it’s investing millions into making it even better.
It might sound counterintuitive, but the Fed cutting interest rates three times this year could cause inflation to spike and actually be worse for markets and the economy as a whole.