(NewsInsights.org) – The US unemployment rate dropped to a historic low of 189,000 new applications during the week ending January 13, 2024. Since then, the rate has intermittently climbed and briefly fallen, only to rise again. A recent report showed 215,000 new unemployment benefits applications for the week ending February 24, 2024, as jobless claims slowly continue to increase year-on-year.
Overall, statistics showed that approximately 1.9 million citizens were collecting unemployment as of the week ending February 17. That marked an increase of at least 45,000 from the previous week. Overall, the 4-week running average, providing a less volatile perspective of the trend over time, showed a slight drop in new benefits applications, down by approximately 3,000.
According to reports from the Department of Labor, the January unemployment rate remained steady at 3.7% for the fourth month in a row. The rate has not changed significantly from the 3.4% rate experienced in January 2023. In fact, rates have remained relatively stable during the past year at levels between 3.4% to 3.9%.
The January 30 Job Openings and Labor Turnover Summary (JOLTS) showed a decrease in the overall number of new monthly job openings since January 2023, down from 10.8 million to about 8.9 million in November 2023 after rebounding from a low of 8.7 million.
Both the Labor Department and the Federal Reserve have kept a close eye on unemployment numbers because the latter agency hiked interest rates a grand total of 11 times since March 2022, hoping to control skyrocketing inflation. However, recession and unemployment remained possible side effects of the rapid interest rate increases. The Fed, walking a tight wire, hoped to find a “soft landing” to cool inflation without driving the economy into a recession or worse.
The Fed has slowed interest rate increases and signaled that it may cut interest rates in 2024, prompting further market growth. The 24-month average low unemployment rates falling below 4% have fueled the Fed’s optimism.
Still, the tech sector has indicated job layoffs are coming. Cisco announced it would dismiss as much as 5% of its workforce, or 4,000 people. Companies like Microsoft, Amazon, PayPal, Discord, Sony, Zoom, and Google parent Alphabet have indicated they would also reduce their workforces. If they follow through, the next jobs report in March could look significantly different.
Copyright 2024, NewsInsights.org
