Jobless claims decline as the Fed eyes more rate hikes

[mystery-ak]

Jobless claims decline as the Fed eyes more rate hikes
by Zachary Halaschak, Economics Reporter |
December 01, 2022 08:38 AM

The number of new applications for unemployment benefits dropped by 16,000 to 225,000 last week, the Labor Department reported Thursday.

Falling jobless claims are a sign the economy is still adding jobs despite the Federal Reserve’s efforts to tighten monetary policy to slow economywide spending and bring down inflation.

This week’s jobless claims number is being closely watched as it is the last such report as the Federal Reserve votes on raising rates next week.

For a long stretch toward the end of the summer, jobless claims defied expectations and remained low — even despite the Federal Reserve’s aggressive and historic rate hikes. Since the start of October, though, they have been above 210,000.

The Fed has been aggressively jacking up interest rates to tame inflation, although the trade-off is that rising interest rates slow demand and can result in a recession.

more
https://www.washingtonexaminer.com/policy/economy/jobless-claims-decline-as-the-fed-eyes-more-rate-hikes

[rustynail]

Continuing Jobless Claims Hit 10-Month Highs As Layoffs Exploded In November
While initial jobless claims dipped last week (from 241k to 225k), Challenger Job Cuts exploded higher, jumping 416.5% YoY (up 127% in November)...
https://www.zerohedge.com/personal-finance/continuing-jobless-claims-hit-10-month-highs-layoffs-exploded-november

[mystery-ak]

December 1, 2022
November ends with a bad jobs report
By Silvio Canto, Jr.

November started with talk of a red wave, turned into the GOP winning the House by a small majority, and closes with a bad jobs report: 

    Private hiring slowed sharply during November in a sign that the historically tight labor market could be losing some steam, according to a report Wednesday from payroll processing firm ADP.

    Companies added just 127,000 positions for the month, a steep reduction from the 239,000 the firm reported for October and well below the Dow Jones estimate for 190,000. It also was the lowest total since January 2021.

    The relatively weak total comes amid Federal Reserve efforts to loosen up a jobs picture in which there are still nearly two open positions for every available worker. The central bank has raised its benchmark borrowing rate six times this year, but the unemployment rate is still 3.7%, near the lowest since 1969.

    “Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains,” said ADP’s chief economist, Nela Richardson.

Having an impact on job creation?  So does the last paragraph mean that the recession is here or knocking on the door?   The markets reacted cautiously to mixed economic signals and wait for the Fed's next move.

more
https://www.americanthinker.com/blog/2022/12/november_ends_with_a_bad_jobs_report.html