WASHINGTON, Oct 29 (Reuters) – The number of Americans filing new claims for unemployment benefits hovered near 57-year lows last week amid labor market resilience.
Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 194,000 for the week ended October 24, the Labor Department said on Thursday. Economists polled by Reuters had forecast 199,000 claims for the latest week.
Claims have stayed mostly below 200,000 since mid-September and are within striking distance of the 189,000 level touched in mid-July, which was the lowest reading since 1969.
Economists view the labor market as remaining in a “low-hire, low-fire” state. They said strong profits as domestic demand remains resilient were keeping layoffs near historic lows. But the ongoing US-Israeli war with Iran was making employers hesitant to increase headcount, economists said.
The claims report showed the number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, dropped 21,000 to a seasonally adjusted 1.701 million during the week ended October 17.
The so-called continuing claims covered the week during which the government surveyed households for October’s unemployment rate. The jobless rate was at 4.2% in September, and could remain steady or even edge down this month as a Conference Board survey on Tuesday showed consumers more optimistic about the labor market in October.
A reduction in the labor force amid the Trump administration’s immigration crackdown is a key factor in keeping the unemployment rate low. The Federal Reserve on Wednesday left its benchmark overnight interest rate in the 3.75%-4.00% range while acknowledging that inflation “remains elevated.”
Economists expect the US central bank to raise rates in December. Fed Chairman Kevin Warsh acknowledged the labor market stability, telling reporters that “on the employment side of the Fed’s dual mandate, conditions are quite positive.”
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
Comments