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US job market shows first signs of weakness



The U.S. job market is showing the first signs of weakness after a higher-than-expected number of unemployment claims last week, according to data released by the Labor Department on Thursday.

According to Briefing.com consensus, 211,000 people registered for these unemployment benefits between Jan. 27 and Feb. 4, 21,000 more than last week and above analysts’ expectations of 198,000.

This is the highest number of weeks since the beginning of the year.

Similarly, Michael Pearce, chief economist at Oxford Economics, stressed that “registrations remain very low compared to historical levels”.

However, “it could be the first sign,” analysts said.

The unemployment rate hit 3.4% in January, the lowest level since 1969. February figures will be released on Friday and the market expects a stable unemployment rate with his 225,000 jobs created.

In February, US employers cut 77,770 jobs. That’s less than January, but well above February 2022 data, according to consulting firm Challenger, Grey & Christmas, also released Thursday.

This is the highest job cuts in a single month in February since 2009, when the mortgage crisis hit the heart of the US.

“It is clear that employers remain wary of rate hikes planned by the Fed. We’re cutting costs in places,” consultancy Andrew Challenger was quoted in a statement.

Most of the layoffs are concentrated in the technology sector, but they are also increasing in retail and finance.

Source: Diario.Elmundo

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