Last week, the number of Americans filing for unemployment benefits unexpectedly surged, clearly revealing that the U.S. labor market is gradually showing signs of fatigue.
Specifically, data shows that on December 12, Thursday, the U.S. Department of Labor released a key statistic: for the week ending December 7, the number of first-time applicants for unemployment benefits jumped to 242,000, the highest point in nearly two months. This figure is significantly higher than the market expectation of 220,000 and also exceeds the previous week's 224,000.
Moreover, the unadjusted number of first-time unemployment claims also rose to the highest level since January of this year. Notably, California saw the most significant increase, followed by Texas and New York. Only four states experienced a slight decrease, further proving that the surge in first-time unemployment claims is a widespread phenomenon across the nation.
Analysts point out that this series of unemployment benefit data may increase the likelihood of the Federal Reserve taking measures to cut interest rates next week. Although the Federal Reserve has made limited progress in recent months in its efforts to keep inflation at a target of 2%, the current unemployment data undoubtedly brings new considerations.
Compared to the previous week, the four-week moving average increased by 5,750 people, reaching 224,250. Additionally, for the week ending November 30, the number of individuals continuing to file for unemployment benefits also rose by 15,000, seasonally adjusted to 1.886 million, a figure close to the highest level since November 2021.
Of particular note, the employment report released last week for November also showed that the unemployment rate has risen to 4.2%, and the number of workers unemployed for three months or longer is also steadily increasing. This trend undoubtedly adds more uncertainty to the future of the U.S. labor market.