The number of Americans filing new claims for unemployment benefits edged higher last week, rising by 9,000.
However, the claims figures are not yet within the “red flag” range, according to economists. At a seasonally adjusted 225,000, it’s still below the 270,000 threshold.
Federal Reserve Chair Jerome Powell — the chief architect of the central bank’s aggressive interest rate hikes aimed at bringing soaring inflation to heel — recently said “it feels like we have a structural labor shortage out there.”
A tight job market impacts job creation and pay gains, and as the possibility of a recession looms, hiring may slow in the new year as companies prepare for an economic downturn.