The number of Americans applying for unemployment benefits decreased slightly last week, indicating that companies are retaining their staff despite the impact of rapid inflation rates.
Unemployment Benefits Claims Inch Back Down As Companies Hold On To Their Employees Amid The Inflation|Livelihood Law
In the US, applications for unemployment benefits decreased slightly last week.
This is because businesses are choosing to keep their employees amid being significantly affected by the increase in interest rates over the past year.
The Labor Department reported that the number of Americans applying for unemployment benefits decreased by 4,000 to a total of 228,000 for the week ending on August 26.
The four-week moving average of unemployment benefits, which helps smooth out the fluctuation in weekly numbers.
Unemployment benefits applications are used to gauge the number of people who have been laid off from their jobs in a specific week.
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The rapid inflation rates have been affecting the unemployment benefits applications.
Over the past year and a half, the Federal Reserve has raised interest rates 11 times in order to combat inflation. Currently, the interest rates are at 5.4%, which is the highest in 22 years, affecting the unemployment benefits applications.
According to Trading Economics, The four-week moving average application for unemployment benefits remained relatively stable at 237,500 in the week ending August 26th.
Unemployment benefits have a big impact in financial markets as unemployment benefits measures new and emerging unemployment, Trading Economics added.
READ MORE|US applications for jobless claims inch back down as companies hold on to their employees
