Americans filed for unemployment benefits fell slightly 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. 13 fell from 2,000 to 250,000, the Labor Department reported Thursday. Last week’s figure, frowned upon by some, dropped by 10,000.
The four-week average of claims, which smoothes out some of the weekly volatility, decreased by 2,750 to 246,750.
The number of Americans receiving traditional unemployment benefits increased by 7,000 in the week ending Aug. 6 to 1.43 million. It’s the highest number since early April.
Jobless claims generally reflect layoffs and are often seen as an early indicator of where the job market is headed.
U.S. employment in 2022 will be very resilient in the face of rising interest rates and slowing economic growth.
The Labor Department reported earlier this month that US employers added 528,000 jobs in July. This is more than double what the forecaster expected. The unemployment rate he dropped to 3.5%, tying her 50-year low reached just before the coronavirus pandemic hit the US economy in early 2020.
The US recovered from the 2020 COVID-19 recession with unexpected strength, and businesses scrambled to find enough workers.
That’s not to say the US economy doesn’t face challenges. 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.
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.