US weekly jobless claims unexpectedly fall
economictimes.indiatimes.comUnited Auto Workers (UAW) union forces automobile manufacturers to temporarily lay off workers because of shortages of some materials.
Initial claims for state unemployment benefits dropped 20,000 to a seasonally adjusted 201,000 for the week ended Sept. 16, the Labor Department said on Thursday.
Economists polled by Reuters had forecast 225,000 claims for the latest week.
The labor market remains tight, with claims in the lower end of their 194,000 to 265,000 range for this year.
The Federal Reserve held interest rates steady on Wednesday but stiffened its hawkish stance, with a further rate increase projected by the end of the year and monetary policy to be kept significantly tighter through 2024 than previously expected.
Since March 2022, the U.S. central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.
Fed Chair Jerome Powell told reporters on Wednesday that «the labor market remains tight, but supply and demand conditions continue to come into better balance.» Job growth and openings have been slowing.
The UAW last week launched a targeted strike against Ford, GM and Stellantis, impacting one assembly plant at each company. It has threatened to broaden the work stoppages, which for now only involve about 12,700 of the affected 146,000 UAW members.
Though striking workers are not eligible for unemployment benefits, the walkout has snarled the supply chain.
Ford last Friday furloughed 600 workers who are not on strike, while GM said it expected to halt operations at its Kansas car plant, affecting 2,000 workers.
