US weekly jobless claims jump to fresh four-month high as recession worries mount

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US weekly jobless claims jump to fresh four-month high as recession worries mount

On Thursday, US Labour Department data had unveiled that the number of Americans filing for state unemployment benefits for the first time on their lives, climbed to a fresh four-month peak last week, as investors appeared to be gradually receiving the messages from US Federal Reserve over a likely melt-down in job market.

In the matter of the fact, latest US Labour Department data comes over the heels of a September US Fed policy meet, while the US Fed Chair Jerome Powell had forecasted that the US unemployment could hit as high as 4.4 per cent by early-2023, while a steep setback in labour market is highly likely over the final quarter of the year.

On top of that, the US Fed had warned that the US economy would only grow by 0.2 per cent this year, while several analysts including heavy-weight US lenders like of JPMorgan Chase & Co had forecasted a recession in the US as early as by early-2023.

Besides, several analysts were quoted saying that an average-scale recession would witness a drop of 15 per cent in earnings from major corporates. Nonetheless, latest weekly jobless claims data that had witnessed a giant leapfrog in initial claims to a four-month high, could be a signal that the US labour market might be loosening grips.

US weekly jobless claims rise to four-month peak

According to data from the US Labour Department, the US weekly jobless claims jumped by 29,000 positions on an adjusted basis to 219,000 over the week that ended on October 1, Aside from that, continuing claims rose by 15,000 to 1.361 million over the week that ended on September 23, while layoffs soared as much as by 46 per cent last month to 29,989 positions.