?States reported that 243,000 workers filed for new unemployment benefits during the week ending Aug. 20, a decrease of 2,000 from the previous week’s revised level. 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.
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.