US Economy: Labor Market Remains Strong As Unemployment Claims Fell Last Week
Unemployment applications fell last week, pointing to a strong labor market even as the overall economy remains shaky. The number of claims for unemployment assistance fell to 222,000 last week, a decrease of 4,000 from the week before, according to the Labor Department.
Economists had expected jobless claims to rise to around 228,000, a Bloomberg News survey found.
Amid stubborn inflation, the Federal Reserve has raised interest rates multiple times. However, hiring has remained steady in recent months. The U.S. added 261,000 jobs in October, as unemployment rose slightly to 3.7%.
However, the labor market remains hot, with nearly two openings for every job seeker.
The news comes on the back of layoff sprees in some industries, particularly big tech. Amazon (AMZN) is planning to trim its workforce by 10,000 this week. Last week, Meta Platforms (META), Facebook's parent firm, shed nearly 11,000 employees, roughly 13% of its staff.
The Labor Department report does not reflect those numbers. However, some workers, including those with specialized skills in the tech industry, have been able to land new jobs quickly after layoffs.
Continuing claims, which represent the number of people seeking ongoing unemployment benefits, rose by 13,000 to 1.5 million in the week ending Nov. 5. Those figures are better than the early pandemic numbers, but are up from this past spring. Continuing claims are reported with a one-week lag.
The previous week included Veterans Day and holidays tend to be volatile periods for the job market.
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