Per Bloomberg

A recent report by Bloomberg shows that the amount of applicants for unemployment benefits in the US is increasing. The current number of applications climbed to a new over-a-year high.

The last time the US experienced this many unemployment benefit applications was in October 2021. The report also mentioned the moderation of wholesale inflation, which they detail could be "signs of softening in the economy."

Omair Sharif, the president of Inflation Insights LLC, gave a statement regarding the CPI numbers and that the Fed should "take a breather" and observe the landscape for the next few months.

Sharif: “The bottom line is that there’s uncertainty right now in general and if that uncertainty is feeding into the labor market, that’s an even bigger reason for the Fed to pause right now and just get a sense of where things are headed.”

The final demand for the producer price index (PPI), saw an increase of 2.3% in April compared to a year ago. This was reportedly its "slowest pace since early 2021."

A Bloomberg Economics economist, Eliza Winger, commented on the increase in jobless claims and what it suggests.

Winger: “The recent surge in jobless claims is consistent with our analysis of WARN notices, which since early this year have suggested imminent softening in the labor market. This will be reflected in coming weeks, when we see clearer signs of labor-market easing in the monthly jobs report.”

In February, it was reported that the US unemployment rate hit its lowest level since 1969 at 3.4%. This came as average hourly pay increased by 4.4% in January compared to a year ago.

In November 2022, it was revealed that the fear of layoffs for Americans was getting closer to pandemic-lockdown levels. A survey by the New York Feds in October showed 43% of participants expect a higher unemployment rate a year from when the survey was launched.

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