The U.S. Department of Labor released the latest unemployment benefits data on Thursday (29th). The adjusted number of initial jobless claims reported last week was 225,000, in line with market expectations, an increase of 9,000 from the previous value of 216,000, but still close to historical lows. Data showed the job market has remained resilient this year despite the Federal Reserve’s aggressive efforts to cool demand.
As of the week of December 24, the adjusted number of initial jobless claims in the United States was reported at 225,000, in line with market expectations, an increase of 9,000 from 216,000 in the previous week, and the 4-week moving average was at 221,000.
As of the week ended December 17, the adjusted number of Americans continuing to receive unemployment benefits reported 1.71 million, an increase of 41,000 from last week’s revised 1.669 million, higher than market expectations of 1.686 million, and the 4-week moving average reported 1.6795 million people.
Initial jobless claims have fluctuated in recent weeks but have remained well below the 270,000 threshold that economists see as a red flag for the labor market. While layoffs in the tech and real estate sectors have not yet had a significant impact on initial jobless claims, furloughed workers appear to find new jobs relatively easily.
The resilience of the job market is a focus for policymakers at the Fed, which has added an average of 392,000 jobs a month this year despite the Fed’s rapid rate hikes and growing fears of a recession next year. Fed officials believe the strength paves the way for further rate hikes to combat inflation, which remains well above its 2 percent annual target, according to their preferred measure of inflation, despite signs of cooling. 3 times.
Economists believe companies are likely to cut hiring before starting layoffs, as employers are generally reluctant to do so amid the difficulty of finding staff during the COVID-19 pandemic.
