?States reported that 230,000 workers filed for new unemployment benefits during the week ending April 22, a decrease of 16,000 from last week’s revised level. First-time jobless claims had stayed low all through 2022, before starting to rise earlier this year. About 1.85 million workers continue to claim unemployment benefits.
Economists point out that unemployment remains low by historic standards, underscoring how the labor market continues to thrive despite the Federal Reserve’s efforts to cool the economy and tamp down inflation by raising interest rates. Annual revisions to the jobless claims data found applications were higher this year than initially thought, however, showing some evidence that the labor market has been cooling since mid-February.
The Fed expects the unemployment rate to rise to 4.5 percent later this year, which would translate into the loss of more than 500,000 jobs. The unemployment rate dipped to 3.5 percent in March, owing to an increase in labor force participation.
Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1 percent annualized pace in the first quarter, the Commerce Department reported today—a signifier that economic growth slowed during the first three months of the year.