US Jobless Claims Fall to 196,000, Lowest Since Mid-July
· Business · ABC News, The Independent, Bloomberg
New US unemployment benefit claims dropped sharply to 196,000 last week, the lowest level since mid-July and down from 206,000 the prior week, the Labor Department reported Thursday. The four-week moving average fell to 203,250, undershooting the 207,500 that economists polled by FactSet had expected. The decline signals that layoffs remain rare and most American workers continue to enjoy job security despite higher gasoline prices squeezing businesses and consumers since the conflict with Iran began on February 28. Employers have added an average of 80,000 jobs a month so far this year, including a surprising 162,000 in August, though that remains well below the 166,000 monthly average of 2023-2024 and the 491,000 recorded during the 2021-2022 post-COVID hiring boom.
Why it matters
The unexpectedly low claims figure suggests the US labor market is holding up better than forecast, which supports consumer spending and economic stability but also reduces the likelihood of near-term Federal Reserve rate cuts. For American workers and jobseekers, continued low layoffs mean persistent job security, though modest hiring keeps wage-growth momentum in check.
Read the original report — ABC News
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