Jobless claims fall in sign layoffs are still rare
Zachary Halaschak
Video Embed
The number of new applications for unemployment benefits unexpectedly dropped by 22,000 to 242,000 last week, the Labor Department reported Thursday.
Falling jobless claims are a sign the labor market is resilient despite the Federal Reserve’s historic effort to tighten monetary policy to slow economywide spending and drive down inflation. The slight drop comes amid some signs that the labor market might finally be beginning to cool.
BIDEN’S STANDING QUESTIONED AS HE ARRIVES IN JAPAN FOR G-7
The weekly jobless claims number has been closely watched over the past year, given the Fed has been hiking aggressively. The Fed opted to raise rates again this month, although it signaled the rate revision may be the last of the series.
While the labor market has held up shockingly well despite the barrage of rate hikes, there have been recent signs the labor market is beginning to soften in response to the barrage of rate revisions.
While still relatively low, jobless claims have drifted up over the past few months.
The number of job openings in the United States dropped below 9.6 million in March, the lowest level in about two years, according to the Bureau of Labor Statistics. About 3.9 million workers quit their jobs in March, down slightly from 4 million the month before. The figure is equivalent to about 2.5% of the workforce.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Still, the most recent employment report again exceeded expectations in April and added 253,000 jobs. The headline job growth number in the report was higher than predicted, and the unemployment rate fell to 3.4%, tied for the lowest such rate since 1969.
The Fed’s next meeting is set for mid-June. Most investors and economists think the Fed will finally pause hiking rates after more than a year of tightening.