Fewer Americans apply for jobless benefits as labor market keeps humming along

📆 2023/08/25 1:29:00
📰 ABC

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Applications for unemployment benefits fell again last week as America’s labor market continues to hum along despite attempts by the Federal Reserve to cool the economy and bring down inflation that’s still higher than optimal

File - A"Now Hiring" sign is shown at the entrance to a Missouri Department of Corrections prison facility, Thursday, July 13, 2023, in Fulton, Mo. On Thursday, the Labor Department reports on the number of people who applied for unemployment benefits last week.

In an attempt to bring down four-decade high inflation, the Federal Reserve raised interest rates 11 times in the past year-and-a-half to the current 5.4%, a 22-year high. Early this month, the government reported that U.S. employers added 187,000 jobs in July, fewer than expected, but still a reflection of a healthy labor market. The unemployment rate dipped to 3.5%, close to a half-century low.

Many businesses struggled to replenish their workforces after cutting jobs during the pandemic, and sizable amount of the ongoing hiring likely reflects efforts by firms to catch up to elevated levels of consumer demand that emerged since the pandemic recession.

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Fewer Americans apply for jobless benefits as labor market keeps humming alongApplications for unemployment benefits fell again last week as America’s labor market continues to hum along despite attempts by the Federal Reserve to cool the economy and bring down inflation that’s still higher than optimal.
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