US jobless claims fall as labor market remains tight
Despite the Federal Reserve's interest rate hikes, new claims for unemployment benefits in the US declined last week, indicating a resilient labor market and raising hopes of avoiding a recession.
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Posted 8/24/2023, 12:39:42 PM
reuters.com
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Weekly jobless claims in the US fell by 11,000 to reach 239,000, indicating a tight labor market despite a slowdown in job growth and raising the risk of the Federal Reserve increasing interest rates.
The number of Americans applying for unemployment benefits fell to a three-week low of 230,000, indicating a strong labor market and low job losses in the resilient U.S. economy.
The number of Americans applying for jobless benefits fell slightly last week as companies held on to employees in an economy that has withstood rising interest rates, with job openings remaining robust and unemployment benefits being collected by about 1.73 million people.
Despite weakening economic growth, the unemployment rate remains low, which is puzzling economists and could lead to a "full-employment stagnation" scenario with a potential recession and low unemployment rates, posing challenges for the Federal Reserve and the overall economy.
The number of Americans filing for jobless benefits unexpectedly dropped to the lowest level since February, indicating a relatively tight job market despite recent signs of softening.
Initial jobless claims for state unemployment benefits rose by 3,000 to 220,000 in the latest week, but the four-week moving average fell to its lowest level since February, indicating that while the pace of hiring may be softening, there are very few layoffs.
The number of Americans applying for unemployment benefits fell to an eight-month low, indicating a reluctance by businesses to lay off workers amidst labor shortages.
Weekly jobless claims in the US have fallen to an eight-month low, indicating a tight labor market despite a slowdown in job growth.