08/15/2024

U.S. Weekly Jobless Claims Unexpectedly Fall

An increase in July's rate had investors fearful

The number of Americans filing new applications for unemployment benefits unexpectedly fell last week, suggesting an orderly labor market slowdown remained in place, though laid-off workers are finding it a bit difficult to land new jobs.

Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 227,000 for the week ended Aug. 10, the Labor Department said on Thursday. Economists polled by Reuters had forecast 235,000 claims for the latest week.

A jump in the unemployment rate to near a three-year high of 4.3 percent in July stoked fears of a labor market deterioration, with financial markets betting that the Federal Reserve could cut interest rates by 50 basis points next month. Layoffs, however, remain low by historic standards.

Please select this link to read the complete article from Reuters.