?States reported that 232,000 workers filed for new unemployment benefits during the week ending Aug. 27, a decrease of 5,000 from the previous week’s revised level. The generally sustained level of jobless claims signifies strong labor demand as companies try to attract and retain employees.
Unemployment claims have been trending up this year, however, and are hovering near the highest level since November 2021. Prior to that, jobless claims had been running around their lowest levels since the late 1960s. Sporadic layoffs and hiring freezes continue to be reported, primarily in the technology sector.
The number of workers continuing to claim unemployment benefits—1.4 million—has also been steadily rising but is still well below the pre-pandemic average of 1.7 million.
Separately, ADP reported that private payrolls grew by 132,000 in August and annual pay went up 7.6 percent for the month, adding to inflation worries. Federal Reserve officials have reiterated that they are determined to continue to raise interest rates until inflation—running at 40-year-highs—is under control, even if it leads to a slowdown in hiring and an increase in unemployment claims.
The U.S. Labor Department’s employment report will be issued tomorrow.