Federal Reserve rate hikes may be causing the labor market to slow down.
The number of new applications for unemployment benefits increased by 7,000 last week to 251,000, the highest number in eight months. Although the figure is still somewhat low in historical terms, rising jobless claims, a proxy for layoffs, is a signal that the labor market may be facing turbulence ahead.
The week-by-week increase in jobless claims could indicate that the labor market may be responding to the Federal Reserve raising interest rates. Many economists believe the U.S. might slip into a recession, and a few are of the opinion that the nation has already entered one.
As the Lord Leads, Pray with Us…
- For Chairman Powell and the members of the Federal Reserve Board as they assess the results of raising interest rates.
- For Secretary Walsh to seek God’s guidance as he heads the Labor Department.
- for discernment for the president and his administration as they address inflation and the economy.
Sources: Washington Examiner, Wall Street Journal
