Despite the expectations of increasing layoffs due to high US interest rates, American unemployment benefit applications have significantly dropped to a nine-month low of 198,000 last week. The new jobless claims fell from a revised 211,000 of the previous week, marking the first time they dipped below the 200,000 mark since mid-January. These figures indicate low job losses and a steady economy, contradicting economists’ forecasts of new claims totaling 210,000 for the week ending Sunday.
A decrease in new jobless claims was reported in 45 out of the 53 states and territories reporting to the federal government, with an increase observed only in eight. Raw or actual claims before seasonal adjustments reached a low of 181,181 – one of the lowest levels in over half a century.
On the other hand, those collecting unemployment benefits in the US saw a rise of 29,000 to 1.73 million. Despite this increase, most laid-off workers are finding new jobs quickly due to the high demand for goods and services.
The economy continues to expand as businesses are not laying off many workers. However, a Federal Reserve survey indicates slower hiring and wage growth rates, suggesting a cooling labor market.
The and were projected to open lower on Thursday. Meanwhile, the yield on the 10-year U.S. Treasury rose slightly to 4.96%. This robust labor market could put pressure on the Federal Reserve to maintain high-interest rates unless wage growth moderates further and helps steer inflation back towards its target of 2%.
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