US Job Market Remains Stable, Unemployment Claims Dip to 216,000
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The US labor market continued to show resilience last week, as fewer Americans sought unemployment benefits. According to the Labor Department, applications for unemployment aid dropped by 6,000 to 216,000 in the week ending November 22, beating economists' forecasts of 230,000. The decline is a sign that overall layoffs remain low, despite recent job cuts announced by major companies like UPS and Amazon. The four-week average of claims, which helps smooth out weekly volatility, also fell by 1,000 to 223,750. This trend suggests that the US job market is stuck in a 'low-hire, low-fire' state, characterized by historically low unemployment rates but also leaving many job seekers struggling to find new employment. The Labor Department reported that the total number of Americans filing for jobless benefits for the week ending November 15 increased to 1.96 million, a sign that those out of work are taking longer to find new jobs. In a separate development, the Bureau of Labor Statistics revealed that hiring picked up in September, with employers adding 119,000 new jobs, but the unemployment rate ticked up to 4.4% due to more Americans entering the job market. The economic data released in recent days suggests that both the economy and inflation are slowing down. As a result, financial markets are anticipating that the Federal Reserve will lower its key interest rate at its next meeting on December 9-10.
