Last week, the number of Americans filing new jobless benefits decreased slightly, indicating that April was the month of significant job creation, reports the Reuters.
The Labor Department said on Thursday that initial claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 184,000 for the week ending April 16. According to Reuters polled economists, 180,000 applications were expected in the most recent week.
Layoffs are being kept to a minimum due to a severe labor shortage. The Federal Reserve’s Beige Book, which is based on data received on or before April 11 from the bank’s contacts, revealed on Wednesday that “demand for workers held steady throughout many regions as well as industry sectors,” but that “hiring was hampered by the widespread lack of suitable workers.”
11.3 Million Jobs Were Created In February
At the end of February, there has been a near-record of 11.3 million job opportunities. The unemployment rate is now 3.6 percent, just a tenth of a percentage point higher than it was before the outbreak. Employers are being forced to raise pay due to labor shortages, which is leading to high inflation.
The Federal Reserve hiked its policy interest rate by 25 basis points in March, the first increase in almost three years. Economists anticipate a half-percentage-point rate hike next month, as well as the Fed beginning to reduce its asset holdings soon.
Claims, which have fallen from a peak of 6.137 million in early April 2020, will be keenly scrutinized for evidence of rising borrowing rates stifling demand.
The government questioned businesses for the non-farm payrolls component of April’s jobs report during the relevant period by last week’s claims data. Between the March and April payroll survey periods, claims increased considerably.
Economists Predict A Substantial Increase In Employment In April
In April, economists predict a substantial increase in employment. In March, payrolls grew by 431,000, marking the 11th month in a row that the number of people employed increased by more than 400,000.