U.S. Labor Department reported on Thursday applications for unemployment benefits increased by 5,000 last week.
The number of weekly claims reflect the American laborers still enjoys job security despite economic concerns and uncertainty.
Stephen Stanley, chief U.S. economist at Santander said the rise in unemployment claims is “another signal that the labor market… is coming back toward a more balanced/normal state. Furthermore, recorded claims remain low by historic standards, despite reaching 245,000.
A narrow job market puts increases pressure on wages and, consequently, on overall prices. The Federal Reserve is concerned that hiking interest rates might cause a recession instead of containing inflation. Interest rates have been raised nine times in about a year, while inflation rates remain below the two percent target.
