Current:Home > InvestUS unemployment claims fall 7,000 to 227,000 in sign of resiliency in job market-DB Wealth Institute B2 Expert Reviews
US unemployment claims fall 7,000 to 227,000 in sign of resiliency in job market
View Date:2024-12-23 15:08:27
WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, another sign that the job market remains resilient in the face of high interest rates.
Jobless claims dropped by 7,000 to 227,000 last week, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 4,500 to 236,500.
In the week that ended Aug. 3, 1.86 million Americans were collecting jobless benefits, down by 7,000 from the week before.
Weekly filings for unemployment benefits, which are a proxy for layoffs, remain low by historic standards. From January through May, claims averaged a rock-bottom 213,000 a week. But they started rising in May, hitting 250,000 in late July and adding to evidence that high interest rates are taking a toll on the U.S. job market.
But claims have since fallen two straight weeks, dispelling worries that the job market was deteriorating rapidly rather than just slowing.
“Claims calmed down and their recent rise appears to be just a blip, not a fundamental shift in the labor market,’' said Robert Frick, economist at the Navy Federal Credit Union.
The Federal Reserve, fighting inflation that hit a four-decade just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023, taking it to a 23-year high. Inflation has come down steadily — from 9.1% in June 2022 to a three-year low of 2.9% last month. Despite higher borrowing costs, the economy and hiring kept cruising along, defying widespread fears that the United States would sink into recession.
But the higher rates finally seem to be taking a toll. Employers added just 114,000 jobs in July, well below the January-June monthly average of nearly 218,000. The unemployment rate rose for the fourth straight month in July, though it remains low at 4.3%. Monthly job openings have fallen steadily since peaking at a record 12.2 million in March 2022. They were down to 8.2 million in June.
As signs of an economic slowdown accumulate and inflation continues to drift down toward its 2% target, the Fed is expected to start cutting rates at its next meeting in September.
veryGood! (9)
Related
- Shocked South Carolina woman walks into bathroom only to find python behind toilet
- Arkansas Residents Sick From Exxon Oil Spill Are on Their Own
- See pictures and videos of the Canadian wildfires and their impact across the planet
- Kim Cattrall Talked About Moving On Before Confirming She'll Appear on And Just Like That...
- The Masked Singer's Ice King Might Be a Jonas Brother
- Abbott Elementary’s Tyler James Williams Addresses Dangerous Sexuality Speculation
- Illinois Passes Tougher Rules on Toxic Coal Ash Over Risks to Health and Rivers
- Mother dolphin and her baby rescued from Louisiana pond, where they had been trapped since Hurricane Ida
- Quincy Jones' cause of death revealed: Reports
- Country singer Kelsea Ballerini hit in the face with bracelet while performing
Ranking
- November 2024 full moon this week is a super moon and the beaver moon
- Power Giant AEP Talks Up Clean Energy, but Coal Is Still King in Its Portfolio
- New Oil Projects Won’t Pay Off If World Meets Paris Climate Goals, Report Shows
- How Much Does Climate Change Cost? Biden Raises Carbon’s Dollar Value, but Not by Nearly Enough, Some Say
- Atlanta man dies in shootout after police chase that also kills police dog
- America's Most Wanted suspect in woman's 1984 killing returned to Florida after living for years as water board president in California
- Princess Eugenie Gives Birth, Welcomes Baby No. 2 With Husband Jack Brooksbank
- Smoke From Western Wildfires Darkens the Skies of the East Coast and Europe
Recommendation
-
FBI raids New York City apartment of Polymarket CEO Shayne Coplan, reports say
-
Calif. Earmarks a Quarter of Its Cap-and-Trade Riches for Environmental Justice
-
What are people doing with the Grimace shake? Here's the TikTok trend explained.
-
Energy Production Pushing Water Supply to Choke Point
-
Black women notch historic Senate wins in an election year defined by potential firsts
-
Trump Administration Offers Drilling Leases in the Arctic Wildlife Refuge, but No Major Oil Firms Bid
-
To See Offshore Wind Energy’s Future, Look on Shore – in Massachusetts
-
Prince Harry Feared Being Ousted By Royals Over Damaging Rumor James Hewitt Is His Dad