U.S. labor market still tight; housing mired in recession

  • 📰 Reuters
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to another month of solid job growth and continued labor market tightness despite efforts by the Federal Reserve to cool demand for workers.

Economists cautioned against reading the technology layoffs as flagging a deterioration in labor market conditions, arguing that these companies were right-sizing after over-hiring during the COVID-19 pandemic.

Stocks on Wall Street fell. The dollar was steady against a basket of currencies. U.S. Treasury yields rose.The Fed last year raised its policy rate by 425 basis points from near zero to the current 4.25%-4.50% range, the highest since late 2007. In December, it projected at least an additional 75 basis points of hikes in borrowing costs by the end of 2023.

Claims decreased between the December and January survey weeks. The economy added 223,000 jobs in December. A separate report from the Commerce Department on Thursday showed single-family homebuilding rebounded in December, but permits for future construction dropped to more than a 2-1/2-year low, pointing to weakness ahead as tighter monetary policy strangles the housing market.Single-family housing starts, which account for the bulk of homebuilding, increased 11.3% to a seasonally adjusted annual rate of 909,000 units last month, the highest level since August.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The Federal Reserve is testing how climate change could hurt big banks | CNN BusinessThe largest six banks in the United States have been given until July to show the Federal Reserve what effects disastrous climate change scenarios could have on their bottom lines. Causation proof required? Theyre sure to go the way of the polar bear. Financial effects of disaster? How about beneficial climate change?
Source: CNN - 🏆 4. / 95 Read more »