In the United States, there was an unexpected drop in new unemployment claims last week. This is the second straight week of decline. Employers are reluctant to cut jobs, highlighting a still tight labor market.
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Upper row: Changes in the number of new unemployment insurance applications, Lower row: Changes in the number of continuous recipients
Source: US Department of Labor
The data show that the labor market has largely remained strong despite the U.S. interest rate hikes over the past year. Job creation remains strong as unemployment claims continue to hover near historic lows.
But more companies, including Amazon.com Inc. and Meta Platforms Inc., have announced layoffs, and the market expects those cuts to eventually be reflected in unemployment claims statistics.
Meanwhile, the impact of the recent bank failures on the labor market is still unclear. Tighter lending standards and higher borrowing costs are likely to weigh on the economy, however.
The four-week moving average of unemployment claims, which remained stable, fell slightly to 196,250.
On a non-seasonally adjusted basis, the number of applications fell to 213,425. By state, California, Illinois, and New York saw large declines, while Indiana saw a large increase.
Original title:US Jobless Claims Unexpectedly Decline for a Second Week(excerpt)
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