Claims for US jobless benefits fell last week to their lowest level in 16 weeks despite attempts by the Federal Reserve to slow the economy and reduce inflation.
The number of Americans filing for unemployment benefits for the week ending Jan. 14 fell by 15,000 to 190,000, from 205,000 the week before, the Labor Department said Thursday.
The four-week moving average of claims, which can match volatility from week to week, decreased by 6,500 to 206,000.
Jobless claims generally serve as a proxy for layoffs, which have been relatively low since the pandemic wiped out millions of jobs in the spring of 2020.
The job market is closely watched by the Federal Reserve, which raised interest rates seven times last year in an attempt to curb job growth and reduce stubbornly high inflation.
Earlier this month, the government reported that US employers added a solid 223,000 jobs in December, evidence that the economy remains healthy even as the Federal Reserve is rapidly raising interest rates to try to slow economic growth and growth. recruitment rate.
The unemployment rate fell to 3.5%, matching a 53-year low.
Although it was a solid report, the December jobs data suggested the job market may be cooling in a way that could help the Fed fight high inflation. It was the smallest gain in two years and extended a slowdown in hiring that began last year.
Average hourly wage growth slowed to its slowest pace in 16 months. That slowdown could reduce pressure on employers to raise prices to offset their higher labor costs.
In updated forecasts last month, Fed policymakers predicted slower growth and higher unemployment for the coming year and into 2024. The jobless rate is projected to rise to 4.6% by the end of 2023. That it would mark a significant rise in unemployment and would typically reflect a recession, which many economists have predicted.
The Fed’s rate hikes last year made it more expensive for consumers to get home loans and car loans, and raised credit card interest rates.
Mortgage rates are above 6%, essentially double what they were before the Federal Reserve started tightening credit. Higher mortgage rates have slowed the housing market, and existing home sales have declined for 10 straight months.
Although the US job market remains strong, layoffs have increased in the technology sector, which is dealing with falling demand as inflation hits both businesses and families.
[Con información de The Associated Press]
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