WASHINGTON — The number of Americans who filed for unemployment checks fell last week from March, suggesting that most workers have unusual job security.
Jobless claims fell by 9,000 to 211,000 last week, the Labor Department reported Thursday. The four-week claims average, which strips out week-to-week fluctuations, fell 3,500 to 223,250.
The overall number receiving unemployment benefits fell by 52,000 to 1.84 million.
The US labor market has cooled significantly since the red-hot hiring days of 2021-2023, when the economy was reeling from the COVID-19 lockdowns.
Through November, employers had added an average of 180,000 jobs per month in 2024, 251,000 in 2023, 377,000 in 2022 and a record 604,000 in 2021. However, reduced job creation is also robust and a sign of great resilience. interest rates
When the Labor Department releases December hiring numbers on January 10, it will show that employers added 160,000 jobs last month.
Weekly jobless claims numbers, a proxy for layoffs, have remained below pre-pandemic levels. The unemployment rate is a modest 4.2%, although it is below the half-century high of 3.4% reached in 2023.
Two and a half years ago, the Federal Reserve raised benchmark interest rates 11 times in 2022 and 2023 to fight inflation that hit four-decade highs. Inflation fell – from 9.1% in mid-2022 to 2.7% in November. Fed to start cutting rates. But inflation gains have stalled in recent months, with year-over-year consumer price increases remaining above the Fed’s 2% target.
At its December meeting, the Fed went ahead and cut its benchmark interest rate for the third time in 2024. But central bank officials signaled that they are likely to be more cautious about future rate cuts: they forecast just two in 2025, down. of the four planned in September.
