The number of Americans filing new claims for unemployment benefits unexpectedly dropped last week, indicating the job market remains tight even as demand for labor is cooling amid higher interest rates.
Initial claims for unemployment benefits fell to 214,000 in the week ended October 15, at a seasonally adjusted rate from 226,000 a week earlier, the Labor Department said Thursday.
The previous week’s data has been revised to show 2,000 fewer orders than previously reported. Economists polled by Reuters had forecast 230,000 claims in the last week.
The labor market has been quite resilient, although some cracks are emerging as the Federal Reserve ramps up its campaign to tighten monetary policy.
The U.S. central bank raised its interest rate from near zero earlier this year to the current range of 3.00% to 3.25%, and officials have signaled that more big hikes are on the way this year, with inflation showing little sign yet of a substantial pullback.
The government said this month that job openings fell by 1.1 million, the biggest decline since April 2020, to 10.1 million on the last day of August.
But economists do not expect widespread layoffs, saying companies are cautious about releasing their workers after hiring difficulties last year as the Covid-19 pandemic forced some people out of the workforce, in part due to prolonged illness. caused by the virus.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
