The number of Americans filing for unemployment benefits dropped to its lowest level in six months last week, indicating that layoffs remain relatively low.
According to the Labor Department, jobless claims fell by 4,000 to 217,000 for the week of November 9, which was better than the 225,000 claims analysts had predicted. Additionally, the four-week average of claims decreased by 6,250 to 221,000, smoothing out some of the weekly fluctuations. These figures suggest that while there are still some job losses, the overall employment situation remains stable.
In response to weakening employment data and falling consumer prices, the Federal Reserve cut its benchmark interest rate in September and again last week. The central bank is shifting its focus from combating inflation to supporting the job market, hoping to achieve a “soft landing” by reducing inflation without causing a recession.
Despite a slight uptick in inflation in October, it has steadily decreased over the past two years, approaching the Fed’s 2% target. Meanwhile, continuing claims for unemployment benefits, which track the total number of Americans receiving benefits, fell to 1.87 million for the week of November 2, in line with analysts’ expectations.
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