Jobless claims fall in sign layoffs are still rare
by Zachary Halaschak, Economics Reporter |
May 18, 2023 08:31 AM
The number of new applications for unemployment benefits unexpectedly dropped by 22,000 to 242,000 last week, the Labor Department reported Thursday.
Falling jobless claims 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 slight drop comes amid some signs that the labor market might finally be beginning to cool.
The weekly jobless claims number has been closely watched over the past year, given the Fed has been hiking aggressively. The Fed opted to raise rates again this month, although it signaled the rate revision may be the last of the series.
While the labor market has held up shockingly well despite the barrage of rate hikes, there have been recent signs the labor market is beginning to soften in response to the barrage of rate revisions.
While still relatively low, jobless claims have drifted up over the past few months.
more
https://www.washingtonexaminer.com/policy/economy/jobless-claims-fall-in-sign-layoffs-are-still-rare
