Applications for unemployment benefits rose by 13,000 to 231,000 for the week ending Nov 11

Applications for unemployment benefits rose by 13,000 to 231,000 for the week ending Nov. 11.

More Americans applied for unemployment benefits last week, and although the overall labor market is still robust, there are emerging indications that it might be entering a cooling phase.

For the week ending November 11, jobless claims increased by 13,000 to 231,000, marking the highest figure in three months, as reported by the Labor Department on Thursday. Jobless claim applications are a key metric reflecting the number of layoffs during a specific week.

Over the week ending November 4, a total of 1.87 million people were receiving unemployment benefits, representing an increase of about 32,000 from the previous week and the highest number in almost two years. This marks the sixth consecutive week of rising continuing claims.

While job growth remains robust, and businesses have yet to significantly reduce their workforce, the upward trend in continuing claims suggests a softening in labor demand, aligning with the Federal Reserve's objectives.

Economists interpret the steady rise in continuing claims as an indication that those who are already unemployed may be facing increased difficulty finding work, signaling a looser labor market in the post-pandemic era.

In October, U.S. employers slowed their hiring, adding 150,000 jobs, marking the third instance in nearly three years where monthly job gains were below 200,000. Despite this, it's the first time in over a year that consumer prices collectively showed no change from September to October.

The Federal Reserve has been cautious in managing the economy and labor market to address the highest inflation in four decades. While the central bank has raised its benchmark rate 11 times since March 2022, recent data showing a continued decline in inflation may influence their approach in the coming months. The four-week moving average of jobless claim applications, smoothing out weekly fluctuations, rose by 7,750 to 220,250.