Weekly jobless claims in the United States show a decrease, although the labor market remains weakened.
Unemployment Climbs, Economy Slows: August's Job Market Report
In a concerning development, the average duration of unemployment in August reached 24.5 weeks, the longest since May 2019, according to recent data. This comes as some individuals may have exhausted their eligibility for unemployment checks, limited to 26 weeks in most states.
The job market's sluggishness was further underscored by a modest increase in payrolls, with only 22,000 jobs added in August. Over the past three months, employment gains averaged 29,000 positions per month. The unemployment rate, currently hovering near a four-year high of 4.3%, reflects this trend.
The Federal Reserve, in response to the uncertain inflationary impact of President Donald Trump's import tariffs, paused its policy easing cycle in January 2022. The central bank, however, projected a steady pace of reductions for the rest of 2025 to support the labor market.
On a positive note, the number of initial claims for state unemployment benefits decreased to 231,000 for the week ended September 13, 2022. This decline was observed across multiple states, with significant drops in Texas, Connecticut, and Michigan. However, there was a moderate increase in claims by federal workers, which are filed under a separate program and with a one-week lag.
The Conference Board, an organisation that monitors economic indicators, cited "higher tariffs" as the reason for the slowdown flagged by the leading indicator. This gauge of future economic activity decreased by 0.5% in August.
Stocks on Wall Street were trading higher, and the dollar gained against a basket of currencies, while U.S. Treasury yields rose. The Fed cut its benchmark overnight interest rate by a quarter of a percentage point to the 4.00%-4.25% range on Wednesday, September 14, 2022.
It is worth noting that the organization responsible for administering unemployment aid in New York City was not specified in the provided search results.
Despite these challenges, it is crucial to remain vigilant and adapt to the evolving economic landscape. The job market's resilience and recovery will continue to be a key focus in the coming months.
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