U.S. initial jobless claims fell to 216,000 last week, the lowest since mid-April.
The number of people applying for unemployment benefits in the U.S. unexpectedly fell last week to its lowest level since mid-April, remaining overall at a relatively low level.
According to data released by the U.S. Department of Labor on Wednesday, in the week ending November 22, initial claims for unemployment benefits decreased by 6,000 to 216,000, lower than the expected 225,000. Continuing claims, which reflect the number of people still receiving unemployment benefits, rose slightly to 1.96 million in the previous week.
The data shows that although employers have reduced the scale of new hiring, they are still working hard to retain their existing workforce. While recent layoff announcements by large companies—including Verizon Communications and Amazon—have increased, actual layoff actions have yet to show a significant acceleration.
Since September, the number of continuing claims has shown an overall upward trend and currently remains at the level seen during the post-pandemic labor market recovery. Although initial claims remain low, it is becoming increasingly difficult for those unemployed to find new jobs.
The latest survey indicates that concerns among Americans about the labor market are intensifying. In November, the consumer confidence index registered its largest drop in seven months, partly due to weaker employment prospects.
A Harris poll shows that 55% of employed Americans fear losing their jobs, and nearly half of the respondents believe that if they lose their current job, it would take four months or longer to find a position of similar quality.
The Federal Reserve has cut interest rates at its past two policy meetings in an effort to boost the slowing labor market. However, facing the dilemma of supporting a weak job market while curbing persistently high inflation, policymakers are divided on whether to continue lowering rates at December's final policy meeting of the year.
The four-week moving average of initial unemployment benefit claims, used to smooth volatility, dropped to 223,750 last week.
More updates to come...
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