Jobless claims fall for 2nd straight week as labor market stays tight

Hiring in the USA in 2022 has been remarkably sturdy even because the nation faces rising rates of interest and weak financial progress.
AFP through Getty Pictures

Fewer Individuals filed for unemployment advantages final week because the labor market continues to face out as one of many strongest segments of the US economic system.

Purposes for jobless help for the week ending Aug. 20 fell by 2,000 to 243,000, the Labor Division reported Thursday. It was the second straight week that claims have fallen. Final week’s quantity was revised down by 5,000.

The four-week common for claims, which evens out a number of the week-to-week volatility, rose by 1,500 to 247,000.

The variety of Individuals accumulating conventional unemployment advantages fell by 19,000 the week that ended Aug. 13, to 1.42 million.

First-time purposes usually replicate layoffs and are sometimes seen as an early indicator of the place the job market is headed.

Hiring in the USA in 2022 has been remarkably sturdy even because the nation faces rising rates of interest and weak financial progress.

US employers added 528,000 jobs in July, in line with the Labor Division, greater than double what forecasters had anticipated. The unemployment fee dipped to three.5%, tying a 50-year low reached simply earlier than coronavirus pandemic slammed the US economic system in early 2020.

However there are different challenges. Client costs have been surging, rising 8.5% in July from a yr earlier — down barely from June’s 40-year excessive 9.1%. To fight inflation, the Federal Reserve has raised its benchmark short-term rate of interest 4 instances this yr.

On Friday, Fed Chair Jerome Powell will ship a speech that might shed extra gentle on how excessive or how briskly the central financial institution might increase rates of interest within the coming months.

Increased borrowing prices have taken a toll. The economic system contracted within the first half of the yr — one measure suggesting the onset of a recession. However the energy of the job market has been inconsistent with an financial downturn.