The number of Americans applying for unemployment benefits rose slightly last week, the Associated Press reports, but still remained at historically low levels, despite high interest rates.
The Labor Department reported today that jobless claims were up by 2,000 to 205,000 the week that ended Dec. 16. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 1,500 to 212,000.
Weekly unemployment claims are a proxy for layoffs. They have remained at extraordinarily low levels in the face of high interest rates.
Overall, 1.87 million Americans were collecting jobless benefits the week that ended Dec. 9, little changed from the week before.
The combination of decelerating inflation and low unemployment has raised hopes that the Fed is managing a so-called “soft landing” — raising rates just enough to tame inflation without causing a recession.
