Applications for unemployment benefits in the United States reached a three-month high last week, which is a sign that the labor market is beginning to loosen its grip after a wave of layoffs at technology businesses. According to figures released by the Labor Department on Wednesday, the U.S. jobless claims rose by 17,000 to a total of 240,000. According to the results of a study conducted by Bloomberg with economists, the median estimate was 225,000.
Continuing claims, which include people who have already received unemployment benefits for a week or more, increased by 48,000 to 1.55 million in the week that ended on November 12, the highest level since March. Continuing claims include people who have already received unemployment benefits for a week or more. In addition to that, that was the sixth consecutive weekly gain in total.
In recent weeks, economists have been paying more attention to continuing claims since in the past, these numbers have served as leading indicators that predicted the onset of recessions. Although the gauge has increased from its lows in May of this year, it is still significantly below the levels it reached last year and the averages it has seen throughout history.
(by Pratik Bhuyan)