Applications for US unemployment aid rose slightly last week

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The number of people seeking unemployment benefits rose modestly last week, the latest sign that the labor market remains strong despite the Federal Reserve’s efforts to cool the economy and hiring. Applications for unemployment aid for the week ending Dec. 24 climbed 9,000 to 225,000, the Labor Department reported Thursday. Unemployment benefit applications are a proxy for layoffs, and are being closely monitored by economists as the Fed has rapidly raised interest rates in an effort to cool job growth and inflation. Should the Fed’s rate hikes cause a recession, as many economists fear, a jump in layoffs and unemployment claims would be an early sign.