Fewer Americans filed for jobless claims last week, with applications dropping by 8,000 to 212,000, showcasing the resilience of the labor market despite elevated interest rates. The four-week average rose to 218,500, reflecting the consistent strength of the job market.
The Federal Reserve’s 11 rate hikes since March 2022 aimed to curb high inflation, a consequence of the economic rebound from the 2020 COVID-19 recession. While inflation has eased, it remains above the Fed’s 2% target. Despite predictions of a recession, the U.S. economy defied expectations, adding 353,000 jobs in January, highlighting its ability to withstand the highest interest rates in two decades.
While overall layoffs are low, there’s been a recent increase, particularly in the technology and media sectors. Companies like Alphabet, eBay, TikTok, Snap, Los Angeles Times, and Cisco Systems announced job cuts. UPS, Macy’s, and Levi’s also recently reduced their workforce.
In total, 1.9 million Americans collected jobless benefits as of Feb. 3, marking a 30,000 increase from the previous week. The article underlines the ongoing dynamics in the job market amidst broader economic trends.
