The number of Americans filing for jobless benefits fell last week as the labor market continues to thrive despite high interest rates and elevated costs. Applications for unemployment benefits fell by 19,000 to 202,000 for the week ending Dec. 9, the Labor Department reported Thursday. Analysts were expecting around 224,000.
Quick Read
- Decline in Jobless Claims: Applications for unemployment benefits fell to 202,000 for the week ending Dec. 9, lower than the expected 224,000.
- Stable Unemployment Benefits Claims: Around 1.88 million people were collecting unemployment benefits during the week ending Dec. 2, a slight increase from the previous week.
- Indication of Layoffs: Jobless claim applications are an indicator of the number of layoffs happening in the economy.
- Federal Reserve’s Interest Rate Decision: The Federal Reserve maintained its key interest rate unchanged for a third consecutive time.
- Potential Rate Cuts in Future: Fed officials signaled the possibility of three quarter-point cuts to the benchmark interest rate next year.
- End of Rate Hikes: The Fed’s statement suggests it might be done with rate hikes and could consider rate cuts as early as next summer.
- Efforts to Curb Inflation: Since March 2022, the Fed has raised its benchmark interest rate 11 times to combat high inflation.
- Resilient Job Market and Economic Growth: Despite high interest rates, the job market and economic growth have remained strong, defying recession predictions.
- Hiring Slowdown Yet Strong: Hiring has slowed compared to 2021 and 2022, but at an average of 232,000 jobs per month this year, it remains robust.
- Healthy Job Addition in Last Month: U.S. employers added 199,000 jobs last month, with the unemployment rate falling to 3.7%.
- Possibility of a “Soft Landing”: The current economic trends suggest the possibility of achieving a “soft landing” where inflation returns to the Fed’s 2% target without triggering a severe recession.
- Historically Low Unemployment Rate: The unemployment rate has been below 4% for nearly two years, the longest streak since the late 1960s.
- Four-Week Moving Average of Jobless Claims: The average smoothed out some of the weekly volatility, showing a decrease to 213,250.
The Associated Press has the story:
US applications for jobless benefits fall again as labor market continues to thrive
Newslooks- (AP)
The number of Americans filing for jobless benefits fell last week as the labor market continues to thrive despite high interest rates and elevated costs.
Applications for unemployment benefits fell by 19,000 to 202,000 for the week ending Dec. 9, the Labor Department reported Thursday. Analysts were expecting around 224,000.
About 1.88 million people were collecting unemployment benefits the week that ended Dec. 2, 20,000 more than the previous week.
Jobless claim applications are seen as representative of the number of layoffs in a given week.
On Wednesday, The Federal Reserve kept its key interest rate unchanged for a third straight time, and its officials signaled that they expect to make three quarter-point cuts to their benchmark rate next year.
The Fed’s message Wednesday strongly suggested that it is finished with rate hikes and is edging closer to cutting rates as early as next summer.
The Fed raised its benchmark interest rate 11 times since March 2022 to slow the economy and rein in inflation that hit a four-decade high last year. The job market and economic growth remained surprisingly resilient, defying predictions that the economy would slip into a recession this year.
Hiring has slowed from the breakneck pace of 2021 and 2022 when the economy rebounded from the COVID-19 recession. Employers added a record 606,000 jobs a month in 2021 and nearly 400,000 per month last year. That has slowed to an average of 232,000 jobs per month this year, a still-solid number.
U.S. employers added a healthy 199,000 jobs last month and the unemployment rate fell to 3.7%, fresh signs that the economy could achieve an elusive “soft landing,” in which inflation would return to the Federal Reserve’s 2% target without causing a steep recession.
The jobless rate has now remained below 4% for nearly two years, the longest such streak since the late 1960s.
The four-week moving average of jobless claim applications — which flattens out some of weekly volatility — fell by 7,750 to 213,250.
