Fewer Americans filed for unemployment benefits last week

Fewer Americans filed for unemployment benefits last week as the labor market stands out as one of the strongest segments of the US economy.

Applications for unemployment assistance for the week ending Aug. 20 fell from 2,000 to 243,000, the Labor Department reported Thursday.

The four-week average of claims, which smoothes out some of the weekly volatility, increased by 1,500 to 247,000.

The number of Americans receiving traditional unemployment benefits fell by 19,000 to 1.42 million in the week ending Aug. 13.

First-time applications generally reflect layoffs and are often seen as an early indicator of where the job market is headed.

Employment in the US in 2022 is very strong despite the country facing higher interest rates and weaker economic growth.

U.S. employers added 528,000 jobs in July, according to the Labor Department. This is more than double what the forecaster expected. The unemployment rate fell to her 3.5%, tying her 50-year low reached just before the coronavirus pandemic hit the US economy in early 2020.

But there are other challenges as well. Consumer prices are soaring, with July up 8.5% year-on-year and down slightly from his 40-year high of 9.1% in June. To combat inflation, the Federal Reserve has raised its benchmark short-term interest rate four times this year.

On Friday, Federal Reserve Chairman Jerome Powell gave a speech that could shed more light on whether or how quickly the central bank could raise interest rates in the coming months. to hold.

Rising borrowing costs have hit hard. The economy contracted in the first half, making him one of the indicators of the beginning of a recession. However, the strength of the job market is not consistent with the recession.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *