Summary
- The number of continuing unemployment benefit claims in the United States has reached its highest level in three years and seven months.
- Due to signs of a slowing job market, uncertainty about the economy is increasing and there are growing concerns about the resilience of job recovery weakening.
- On Wall Street, it has been noted that if employment worsens, the possibility of a rate cut by the U.S. central bank is being raised.
Signs of a Cooling Job Market
Unusual trends are being detected in the United States job market. The number of people claiming unemployment benefits for more than two weeks after failing to find new employment reached its highest level in three years and seven months. Concerns are rising that the resilience of job recovery is faltering amid signs of an economic slowdown.
The U.S. Department of Labor announced in its weekly employment report on the 12th that "the number of continuing unemployment benefit claims from May 25 to June 1 recorded 1,956,000." This figure is up by 54,000 from the previous week and is the highest since November 2021. Continuing unemployment benefits indicate that jobseekers are continuing their job search for more than a week.
During the same period, initial unemployment benefit claims stood at 248,000, unchanged from the previous week, but the four-week moving average rose to 240,250, marking the highest in one year and 10 months since August 2023. Generally, the number of new claims is interpreted as an indicator of short-term volatility in the job market, while continuing claims indicate the pace of job recovery.
Recently in the United States, both employment and consumer indicators have shown signs of slowing, prompting skepticism about a soft-landing scenario for the economy. Wall Street analysts are also projecting that "if the job market weakens, the timing of the U.S. central bank's rate cuts could be accelerated."
Up to last year, the job market remained relatively robust thanks to an influx of immigrants and a recovery in consumption, but recently, as companies cut back on hiring, the job search period for the unemployed is growing longer.
Reporter Dayoun Lim y2eonlee@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
