The number of applications for unemployment benefits in the United States unexpectedly rose

According to the US Department of Labor, the number of applications for state unemployment benefits rose unexpectedly for the first time since the end of April. However, analysts considered that this is a temporary deviation in the labor market, which is improving by other indicators as the economy recovers.

In particular, the number of initial applications for unemployment benefits under ordinary government programs increased by 37 thousand, to 412 thousand. According to the average forecast of analysts, 360 thousand applications were expected.

However, even with a surge in filings, layoffs have dropped significantly in recent months as the pandemic recedes and businesses increase hiring. Experts predict a further improvement in the situation on the labor market by the end of the year and expect that by the end of the IV quarter the unemployment rate will fall below 5%.

At yesterday's Fed meeting, the head of the regulator said that the pace of improvement in the labor market was uneven. However, against the background of increased vaccination, employment growth will occur at a faster pace.