US weekly jobless claims rise as recession signals grow; labour market seen resilient



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US weekly jobless claims rise as recession signals grow; labour market seen resilient

On Thursday, US Labour Department data had unveiled that the number of Americans filing for state unemployment benefits for the first time on their live rose by 5,000 to 213,000, illustrating an utterly squeezed labour market despite US Fed’s attempt to loosen up the ties with a cycle of aggressive rate-hikes.

On top of that, latest labour department data underscoring a submissively strong US Labour market came forth a day after the US Fed had raised its benchmark borrowing cost by 75 bps (basis percentage points) to a range between 3.00 to 3.25 per cent.

Aside from that, the US Federal Reserve also had forecasted that the US labour market would likely to witness a melt-down over the second half of the year, while unemployment rate could jump to 4.4 per cent by early-2023, however, Thursday’s data had underscored that US businesses are still interested in hiring workers with layoffs remained low.

US labour market remains resilient

According to data from US Labour Department, the number of Americans filing for state unemployment benefits for the first time on their lives rose by 5,000 to 213,000 over the week that ended on September 17, while continuing claims dipped by 22,000 to 1.379 over the week that ended on September 10.

Meanwhile, a Chief economist at FWDBONDS, Christopher Rupkey said followed by the release of the data, “Fed officials are hitting the brakes hard, but so far employers are just giving this policy a great, big yawn and holding on tight to their workers.

It's either that or there is some sort of stealth job losses where those made redundant are not getting unemployment benefits”.