Jobless claims tumble to lowest level since 2022
‘Mornings with Maria’ panelists react to December’s better-than-expected jobs report, detailing its expected impact on the labor market and U.S. economy.
The number of Americans filing for unemployment benefits last week unexpectedly fell to the lowest level in 16 months, evidence that the labor market remains resilient even in the face of high interest rates and inflation.
Figures released Thursday by the Labor Department show initial claims for the week ending Jan. 13 plunged by 16,000 to 187,000, below the 2019 pre-pandemic average of 218,000 claims. It marks the lowest level for jobless claims since September 2022.
Continuing claims, filed by Americans who are consecutively receiving unemployment benefits, also fell to 1.8 million for the week ended Jan. 6, a decrease of 26,000 from the previous week.
THE NUMBER OF HIGH-PAYING JOBS IS DWINDLING
Signage for a job fair is seen on 5th Ave. in New York City on Sept. 3, 2021. (Reuters/Andrew Kelly / Reuters Photos)
«The labor market continues to show signs of resilience despite the rapid pace of interest rate hikes that the Fed initiated close to two years ago,» said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The stronger-than-expected data could have major implications for the Federal Reserve, which is trying to cool the economy – and the labor market – through a series of aggressive interest rate hikes. Policymakers have signaled in recent weeks that rate increases may be over but have given no guidance on when they may begin to loosen monetary policy.
Experts say that central bankers are unlikely to cut rates until there is further evidence the labor market is softening.
US ECONOMY ADDS 216K JOBS IN DECEMBER, BEATING EXPECTATIONS
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