Fewer Americans applied for unemployment benefits last week as the labor market continues to hold up despite higher interest rates imposed by the Federal Reserve in its bid to curb inflation. The Labor Department reported Thursday that unemployment claims for the week ending April 20 fell by 5,000 to 207,000 from 212,000 the previous week. That’s the fewest since mid-February.
Quick Read
- Unemployment Claims Decrease: Applications for U.S. unemployment benefits dropped last week, with 207,000 claims filed, marking the lowest number since mid-February. This reflects continued strength in the labor market amid ongoing economic challenges.
- Consistent Low Layoff Levels: Despite the Federal Reserve’s significant interest rate hikes intended to cool the economy and reduce inflation, layoffs have remained historically low. This trend continues to underscore the resilience of the job market post-pandemic.
- Rising Employment and Economic Resilience: The U.S. job market has shown surprising durability, with significant job additions and an unemployment rate that dipped to 3.8% last month, maintaining a historically low level for 26 consecutive months.
- Sector-specific Layoffs: Notable layoffs have been announced primarily in the technology and media sectors, including major companies like Google, Apple, and Amazon, indicating targeted industry adjustments rather than broad economic downturns.
- Overall Jobless Benefit Claims: The total number of people receiving jobless benefits fell to 1.78 million, highlighting ongoing employment stability despite economic headwinds and interest rate increases.
The Associated Press has the story:
US applications for jobless claims fall to lowest level in 9 weeks
Newslooks- (AP)
Fewer Americans applied for unemployment benefits last week as the labor market continues to hold up despite higher interest rates imposed by the Federal Reserve in its bid to curb inflation.
The Labor Department reported Thursday that unemployment claims for the week ending April 20 fell by 5,000 to 207,000 from 212,000 the previous week. That’s the fewest since mid-February.
The four-week average of claims, which smooths out some of the weekly up-and-downs, ticked down by 1,250 to 213,250.
Weekly unemployment claims are considered a proxy for the number of U.S. layoffs in a given week and a sign of where the job market is headed. They have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in a bid to stifle the four-decade high inflation that took hold after the economy rebounded from the COVID-19 recession four years ago. The Fed’s intention was to loosen the labor market and slow wage growth, which it said contributed to persistently high inflation.
Many economists thought there was a chance the rapid rate hikes could cause a recession, but jobs have remained plentiful and the economy surged on strong consumer spending.
Last month, U.S. employers added a surprising 303,000 jobs, yet another example of the U.S. economy’s resilience in the face of high interest rates. The unemployment rate dipped from 3.9% to 3.8% and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.
Though layoffs remain at low levels, companies have been announcing more job cuts recently, mostly across technology and media. Google parent company Alphabet, Apple, eBay, TikTok, Snap, Amazon, Cisco Systems and the Los Angeles Times have all recently announced layoffs.
Outside of tech and media, UPS, Macy’s, Tesla and Levi Strauss also have recently cut jobs.
In total, 1.78 million Americans were collecting jobless benefits during the week that ended April 13. That’s 15,000 fewer than the previous week.
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