First-time claims for unemployment benefits continued their decline last week, reaching a new low for the past three months. This trend underscores employers’ cautious approach to workforce reductions despite some economic slowdown.
According to data released by the Labor Department on Thursday, initial claims for unemployment insurance were 213,000 for the week ending September 10, down by 5,000 from a revised figure of 218,000 the previous week. This marks the lowest level since May 28.
Economists had anticipated a higher number, expecting around 226,000 initial claims, according to Refinitiv estimates.
Meanwhile, continuing jobless claims for the week ending September 3 totaled 1.4 million, an increase of 2,000 from the revised downward level of the previous week, which saw a decrease of 72,000 claims.
Despite broader economic deceleration, the labor market has remained resilient. Since March, the Federal Reserve has implemented a series of interest rate hikes as part of its efforts to manage demand and address high inflation levels. Federal Reserve Chair Jerome Powell has acknowledged that these measures may cause some economic discomfort, noting that the labor market remains imbalanced with job vacancies outnumbering job seekers.
Many businesses are grappling with labor shortages, prompting them to adjust hiring strategies rather than resorting to layoffs, as noted by economists from regional Federal Reserve banks.
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