Last week, applications for unemployment benefits in the United States reached a three-month high, indicating that the labor market is loosening its grip following a wave of layoffs at technology companies. The Labor Department reported on Wednesday that jobless claims in the United States increased by 17,000 to a total of 240,000. According to the findings of a Bloomberg survey of economists, the median estimate was 225,000.
Unemployment in the U.S. Reached Highest Level Since March
In the week ending November 12, continuing claims increased by 48,000 to 1.55 million, the highest level since March. People who have already received unemployment benefits for a week or more are considered continuing claims. Furthermore, it was the sixth consecutive weekly gain in total.
Economists have been paying closer attention to continuing claims in recent weeks because these figures have historically served as leading indicators that predicted the onset of recessions. Although the gauge has risen from its lows in May of this year, it remains significantly lower than the levels reached last year and the historical averages.
Blue Chips Take the Lead in Mass Layoffs
Amazon.com Inc., Meta — Facebook's parent company — and personal computer maker HP Inc., which announced this week that it would cut up to 6,000 jobs, are just a few of the prominent technology companies that have added their names to the growing list of companies that have announced job cuts or hiring freezes.
Because many tech firms increased hiring during the pandemic-era e-commerce boom, rising layoffs in the industry may not necessarily foreshadow broader economic weakness. This is because the e-commerce boom occurred prior to the epidemic. However, other fields are not immune to the issue. Workers in FedEx Corporation's freight division are being given unpaid time off ahead of the holiday season, which is often the company's busiest time of year.
Web3 Has a Different Story
However, in the Web3 landscape, companies have increased their hiring appetite in order to meet the industry's growing demands. Binance, the cryptocurrency giant, recently announced a new hiring of 8000 people by the end of the year.
In response to news of an increase in U.S. jobless claims, the cryptocurrency king, Bitcoin, rose 0.8% in the last hour and 2% in the last 24 hours. Bitcoin is currently trading at $16,500, well above the $15k price mark, at the time of writing.