U.S. Unemployment Claims Rise, Indicating Cooling Labor Market

Investing.com — The number of Americans filing for first-time unemployment benefits rose by more than anticipated last week, indicating a cooling labor market.

Initial jobless claims in the U.S. climbed to 224,000 in the week ended on Nov. 30, a small increase from the revised total of 215,000 in the prior week. Economists had forecasted a consensus figure of 215,000.

The number of people receiving benefits after an initial week of aid, known as continuing claims, fell by 25,000 to a seasonally adjusted 1.871 million.

Claims have retreated from the near 1-1/2-year high seen in early October, which resulted from hurricanes and major industrial strikes. They are now at levels consistent with low layoffs and a rebound in employment.

The widely-watched monthly jobs report is due on Friday, with economists expecting the economy to have added 202,000 jobs in November, following disruptions from strikes and hurricanes that impacted October’s statistics.

The Federal Reserve began its rate-cutting cycle in September with a 50-basis-point cut, followed by a 25 bps reduction at the Nov. 6-7 meeting. The U.S. central bank is also widely expected to trim interest rates by another 25 bps later this month.

Fed Chair Jerome Powell mentioned earlier this week that the Fed can adopt a "little more cautious" stance in cutting rates as the economy appears robust. He noted, "The economy is stronger than we thought it would be in September…the labor market is better, and inflation is coming in a little higher" in his last public address before the Fed's Dec. 17-18 meeting.