|
Jobless claim applications declined by 22,000 to 220,000 for the
week of Dec. 14, the Labor Department reported Thursday. That’s
fewer than the 229,000 analysts were forecasting.
Continuing claims, the total number of Americans collecting
jobless benefits, fell by 5,000 to 1.87 million for the week of
Dec. 7. That was also fewer than analysts had projected.
The four-week average of weekly claims, which quiets some of the
week-to-week volatility, rose by 1,250 to 225,500.
Weekly applications for jobless benefits are considered
representative of U.S. layoffs.
While the job market has shown some softening recently, it
remains broadly healthy and has held up better than many experts
predicted considering that interest rates have been elevated for
years. The Federal Reserve instituted a flurry of rate increases
in 2022 and into 2023 to try to suppress the four-decade high
inflation that took hold when the U.S. economy rebounded from
the brief but sharp pandemic recession.
The Fed cut its benchmark rate again on Wednesday — its third
cut in a row — in response to broadly receding inflation, though
it has proven difficult to get down to the U.S. central bank’s
target of 2%.
The bigger surprise, which led to a huge selloff on Wall Street
Wednesday, was that the Fed projected just two rate cuts in
2025, down from the previous four.
Earlier this month, the government reported that U.S. job
openings rebounded to 7.7 million in October from a 3 1/2 year
low of 7.4 million in September, a sign that businesses are
still seeking workers even though hiring has cooled.
In November, U.S. employers added a strong 227,000 jobs,
following a paltry 36,000 in October, when the effects of
strikes and hurricanes had sharply diminished employers’
payrolls. The government also revised up its estimate of job
growth in September and October by a combined 56,000.
All contents © copyright 2024 Associated Press. All rights reserved
|
|
