The numbers: The number of Americans who applied for unemployment benefits in early December rose slightly to 230,000, pointing to a slow but steady increase in layoffs as the U.S. economy slows.
Economists polled by the Wall Street Journal had forecast new claims to total 230,000 in the seven days ended Dec 3. The figures are seasonally adjusted.
The number of people applying for jobless benefits is one of the best barometers of whether the economy is getting better or worse. New unemployment filings have gradually risen from a 54-year low of 166,000 last spring , but they are still extremely low.
Economists predict layoffs will rise, however, as rising interest rates orchestrated by the Federal Reserve choke off U.S. growth. The tech sector has already suffered a wave of layoffs and manufacturers are also scaling back.
Big picture: The strongest U.S labor market in decades has now become a double-edged sword.
Rising wages and low unemployment have allowed Americans to meet their needs and spend enough to keep the economy growing.
Yet the fastest wage growth in four decades is now adding to high U.S. inflation and putting more pressure on the Fed to get prices back under control.
The Fed could tip the economy into recession if it raises rates high enough to cool off a hot labor market.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to rise in Thursday trades.
