?States reported that 228,000 workers filed for new unemployment benefits during the week ending April 1 as claims continue their upward climb. About 1.8 million workers total claimed unemployment benefits, the highest level since December 2021.
Economists point out that unemployment remains exceptionally low by historic standards, underscoring how the labor market is thriving despite the Federal Reserve’s efforts to cool the economy and tamp down inflation by raising interest rates. The Fed expects the unemployment rate to rise to 4.5 percent this year, from its current 3.6 percent level, which would require the loss of more than 540,000 jobs.
The ADP employment report released yesterday showed that private sector job growth rose by just 145,000 in March, coming in under expectations. Tomorrow, the Department of Labor will report on how many jobs the U.S. economy added in March, the unemployment rate and wage gains for the month.