States reported that 239,000 workers filed for new unemployment benefits during the week ending April 8, an increase of 11,000 from last week and the highest number since January 2022. About 1.81 million workers continue to claim unemployment benefits, the highest level since December 2021.
Economists point out that unemployment remains low by historic standards, underscoring how the labor market continues to thrive despite the Federal Reserve's efforts to cool the economy and tamp down inflation by raising interest rates. Annual revisions to the jobless claims data showed applications were higher this year than initially thought however, showing some evidence that the labor market has been cooling since mid-February.
The Fed expects the unemployment rate to rise to 4.5 percent this year, which would require the loss of more than 500,000 jobs. The unemployment rate dipped to 3.5 percent in March, owing to an increase in labor force participation.