(Reuters) – The variety of Individuals submitting new claims for unemployment advantages fell final week, as labor market circumstances remained tight regardless of the Federal Reserve’s aggressive rate of interest hikes.
Preliminary claims for state unemployment advantages decreased by 10,000 to a seasonally adjusted 230,000 for the week ended Aug. 19, the Labor Division stated on Thursday. The earlier week’s stage was revised up modestly by 1,000. Economists polled by Reuters had forecast 240,000 claims for the newest week.
The labor market is constant to defy expectations within the face of the Fed’s aggressive curiosity hikes since March 2022, as employers hoard staff after struggling to seek out labor in the course of the COVID-19 pandemic. Labor market energy and receding inflation are fanning optimism that the financial system may keep away from a recession.
The variety of folks receiving advantages after an preliminary week of help, a proxy for hiring, elevated 9,000 to 1.702 million in the course of the week ending Aug. 12, the claims report confirmed. These so-called persevering with claims stay low by historic requirements, indicating that some laid-off staff are experiencing brief spells of unemployment.
(Reporting by Safiyah Riddle; Modifying by Paul Simao)
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