Applications for Unemployment Benefits Rose Second Week in a Row

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Applications for Unemployment Benefits Rose Second Week in a Row
13 May 2022
4 min read

News Synopsis

Last week, new claims for unemployment benefits rose for the second straight week, but remained at record lows, indicating a tight US employment market.

Initial jobless claims increased by 1,000 to 203,000 last week from the previous week’s revised level of 202,000, the Labor Department said on Thursday. Filings for unemployment benefits have almost reached the record lows set in 1968 this year. The four-week average for claims rose to 192,750 last week. 

In another report last week, the Labor Department has said that the number of job openings has risen to the highest since records started in 2000, to 11.5 million in March. Almost 4.5 million people quit their jobs in March, as per the data from the Labor Department. 

Wages have also risen. According to the Labor Department, earnings in April were up 5.5% year-on-year, well above pre-pandemic wage increases. However, these wage increases have not kept pace with historically high inflation.

The Federal Reserve is steadily raising interest rates to curb high inflation. This could cool the employment market somewhat in the coming months. However, it is unlikely that it will significantly boost unemployment claims, Vanden Horten said.

TWN In-Focus