US Weekly Jobless Claims Edge Up

• The number of Americans filing new applications for unemployment benefits rose slightly last week, pointing to steadily easing labour market conditions heading into the final stretch of 2024.
• Sluggish hiring, however, means some people who lose their jobs are collecting unemployment checks for longer periods relative to early this year, potentially keeping the jobless rate above 4.0%. Economists said this should allow the Federal Reserve to cut interest rates again this month, despite stalled progress in lowering inflation to the U.S. central bank's 2.0% target.
• Initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 224,000 (forecast 215,000) for the week ended Nov. 30, the Labor Department said on Thursday. The data included the Thanksgiving holiday, which could have injected some noise into the report. Claims are entering a period of volatility, which could make it difficult to get a clear picture of the labour market.
• Claims remain at levels consistent with continued job growth and have signalled a sharp rebound in nonfarm payrolls in November after the labour market was severely distorted by Hurricane Helene and Tropical Storm Milton, as well as strikes by factory workers at Boeing and another aerospace company.
• Nonfarm payrolls likely increased by 200,000 jobs in November after rising by 12,000 in October, the lowest number since December 2020, a Reuters survey showed. Overall, the unemployment rate is forecast to rise to 4.2% from 4.1% in October.

(Source: Reuters)