Claims for jobless benefits in the US fell to 214,000 in a week

The number of Americans who filed new unemployment benefit applications fell unexpectedly last week, indicating the labor market remains tight even at a time when labor demand is cooling amid rising wages. interest rates.

Initial claims for state jobless benefits fell to a seasonally adjusted figure of 214,000 in the week ending October 15, the report said Thursday. work Department.

Data from the previous week was revised and showed 2,000 fewer applications than previously reported. Economists polled by Reuters had forecast 230,000 claims for the latest week.

The labor market has largely held up, although some cracks are appearing as the Federal Reserve intensifies its campaign to tighten monetary policy.

The US central bank has raised its rate from near zero at the beginning of this year to the current range of 3%-3.25% and monetary authorities have signaled that more major hikes are on the way this year, while inflation shows no signs of slowing yet. a substantial setback.

The government reported earlier in the month that job openings fell by 1.1 million, the biggest drop since April 2020, to 10.1 million on the last day of August.

However, economists do not expect widespread layoffs, as companies were wary of letting go of their workers after hiring difficulties last year, when the Covid-19 pandemic forced some people to leave their jobs, in part due to prolonged illness caused by the virus.

The claims report showed the number of people receiving benefits after an initial week of aid, a proxy for hiring, rose by 21,000 to 1.385 million in the week ending Oct. 8.