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June 15 (UPI) — Initial claims of unemployment during the week ending June 10 remained the same as the previous week. However, the Labor Department reported on Thursday that the four-week moving average reached its highest level in over a year.
Initial claims for joblessness last week totaled 262,000, matching the number from the week ending June 3, which had been revised upwards by 1,000. On the other hand, the less volatile four-week moving average increased by 9,250 from the previous week, reaching a total of 246,750.
“This is the highest level for this average since November 20, 2021, when it reached 249,250,” stated the Labor Department’s report.
The number of people unemployed for several weeks up to May 27 declined by 15,556 from the previous week, totaling 1.6 million. However, the figure was around 1.2 million during the same period last week.
Policymakers at the U.S. Federal Reserve are concerned about the hiring situation. A strong labor market supports wage growth, providing consumers with more discretionary income. This, in turn, leads to increased demand and incentivizes inflation.
Federal Reserve Chairman Jerome Powell, speaking on Wednesday, acknowledged that inflation is “well above” the 2% target rate, while the labor market remains “robust.” He added that there are indications of supply and demand in the labor market balancing better.
The Fed decided on Wednesday to keep lending rates unchanged, allowing policymakers more time to assess the overall direction of the U.S. economy, the world’s largest.
