One of the main causes of the high rate of inflation in the United States is slowly fading. The number of people applying for unemployment benefits has increased again in the American labor market.
Highest weekly gain
In the week at the turn of November and December in the United States, 243,000 people applied for unemployment benefits. That’s four thousand more than the previous week. This is the highest weekly increase in the number of jobless claims in ten months.
“Tensions on the labor market are easing slightly, but demand for labor remains strong,” High Frequency Economics Chief Economist Rubeela Farroqi told Reuters. According to her, the current development of the number of applications for unemployment benefits illustrates the gradual turn in the labor market, when the number of laid-offs will begin to increase.
Development according to analytical assumptions
Current developments are in line with analysts’ expectations. Towards the end of the year, however, it is said that it is necessary to expect very fluctuating weekly data, as many companies will reduce the demand for labor, especially after Christmas, which may be reflected in an increased increase in new applications for unemployment benefits.
