Tausi Insider

A help wanted sign in a storefront in Bedford, N.Y., on Nov. 1. Julia Nikhinson/The Associated Press The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to a still tight labour market, while the economy rebounded faster than previously estimated in the third quarter. Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 216,000 for the week ended Dec. 17, the Labor Department said on Thursday. Economists polled by Reuters had forecast 222,000 claims for the latest week. Claims have swung up and down in recent weeks, but have remained below the 270,000 threshold, which economists said would raise a red flag for the labour market. A raft of layoffs in the technology sector and interest-rate sensitive industries like housing have not had a material impact on claims. Federal Reserve Chair Jerome Powell last week said “it feels like we have a structural labour shortage out there.” Labor market re...

A hiring sign at a job agency in Mount Prospect, Ill., on Jan. 3. Nam Y. Huh/The Associated Press For months, the outlook for the U.S. economy has been a mostly bleak one: Inflation hitting a four-decade high, consumer spending weakening, interest rates surging. Most economists pencilled in a recession for 2023. An economic downturn is still possible. Yet in recent weeks, with inflation showing widespread signs of easing, a more cheerful view has gained traction: Maybe a recession isn’t inevitable after all. One reason for the tentative optimism is evidence that an acceleration in U.S. wages, which has benefited workers but also heightened inflation, is slowing. Federal Reserve Chair Jerome Powell has frequently pointed to fast-rising worker pay to explain why the Fed has had to raise interest rates so aggressively. Fed rate hikes, if carried out far enough and long enough, can weaken the economy so much as to trigger a recession. On Thursday, the government is expected to issue anot...