According to the latest data released by the Department of Labor, first-time claims for jobless benefits slightly increased last week, in line with expectations. The number of initial claims reached 221,000 during the week ended November 2, up by 3,000 from the previous week's revised figure. This figure aligns with economists' forecasts as per FactSet estimates.
While the initial claims returned to expected levels after being influenced by hurricane-related factors, the data also revealed a rise in continuing claims. Continuing claims, which represent individuals who have been receiving unemployment insurance for a week or more, increased by 39,000 to 1.892 million for the week ended October 26. This marks the highest level of continuing claims since November 2021.
The recent trends in the US job market indicate a cooling off, with job growth slowing down. The decline in job creation is primarily attributed to employers scaling back on hiring rather than a surge in layoffs. This shift in the labor market dynamics suggests a more cautious approach by businesses in terms of expanding their workforce.
