U.S. applications for jobless benefits rise to highest level in 2 months but remain relatively low

U.S. applications for unemployment benefits jumped to their highest level in two months last week but remain low relative to historical standards.

Jobless claim applications climbed by 17,000 to 242,000 for the week ended Saturday, the U.S. Labor Department reported Thursday. That’s significantly more than the 220,000 that analysts were forecasting and yet another data point that reflects a cooling labor market.

This week’s report also showed that continuing claims, the total number of Americans collecting jobless benefits, rose by 15,000 to 1.89 million for the week of Nov. 30.

The four-week average of weekly claims, which softens some of the week-to-week volatility, rose by nearly 6,000 to 224,250.

Weekly applications for jobless benefits are considered a proxy for U.S. layoffs.

The number of Long Islanders seeking unemployment insurance spiked, too, hitting its highest amount of initial weekly claims since July, state data shows.

Initial unemployment claims on Long Island hit 3,275 the week ended Saturday, according to state Department of Labor data. The last time claims were higher was the week ended July 13, when weekly claims hit 4,294.

Despite the uptick, claims remain in line with last year's data around the same time when claims were up the week ended Dec. 2 at 3,047.

The number of Long Islanders seeking unemployment insurance benefits recently is a far cry from the height of the COVID-19 pandemic, when weekly claims surged to 59,526 the week of April 11, 2020.

While the job market has shown some cracks recently, it remains broadly healthy and has held up better than many experts predicted considering that interest rates have been elevated in recent years. The Federal Reserve instituted a flurry of rate increases in 2022 and into 2023 to try to suppress the four-decade-high inflation that took hold when the U.S. economy rebounded from the brief but sharp pandemic recession.

The Fed has cut its benchmark rate at its last two meetings in response to receding inflation, which has fallen close to the U.S. central bank’s 2% target from highs above 9%. The Fed is expected by most to issue another rate cut at its final 2024 meeting next week.

Last week, the government reported that U.S. job openings rebounded to 7.7 million in October from a 3 ½-year low of 7.4 million in September, a sign that businesses are still seeking workers even though hiring has cooled.

In November, U.S. employers added a strong 227,000 jobs, following a paltry 36,000 in October, when the effects of strikes and hurricanes had sharply diminished employers’ payrolls. The government also revised up its estimate of job growth in September and October by a combined 56,000.

With Victor Ocasio