Jobless claims fall below 200,000 for first time since September
by Zachary Halaschak, Economics Reporter |
January 19, 2023 08:31 AM
The number of new applications for unemployment benefits unexpectedly dropped by 15,000 to 190,000 last week, the Labor Department reported Thursday, an encouraging sign for the economy.
Falling jobless claims, a proxy for layoffs, 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 last time jobless claims were this low was September of last year.
"While layoffs from high-profile firms make the headlines, plenty of firms are desperate for more workers, especially tech workers," said Robert Frick, a corporate economist at Navy Federal Credit Union. "Those workers are in high demand from the auto industry to the Department of Veterans Affairs to not-for-profits."
The weekly jobless claims number has been closely watched over the past year or so, given the Fed’s aggressive pace of rate hikes. The report comes after the central bank raised rates by half of a percentage point in December and is likely to increase the rate again at the end of this month.
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https://www.washingtonexaminer.com/policy/economy/jobless-claims-fall-below-200000
