The number of Americans applying for unemployment benefits fell sharply last week, according to the Associated Press, a sign that the U.S. job market remains resilient despite higher interest rates.
The Labor Department reported today that jobless claims dropped by 24,000 to 209,000. The previous week’s total — 233,000 — had been the highest since August. The four-week moving average of claims, which smooths out week-to-week volatility, fell by 750 to 220,000.
Overall, 1.84 million Americans were receiving unemployment benefits the week that ended Nov. 11, down by 22,000 from the week before.
The job market and economic growth remained surprisingly resilient, defying predictions that the economy would slip into a recession this year, but hiring has slowed from the breakneck pace of 2021 and 2022. So far in 2023, monthly hiring has averaged a still-solid 239,000, but it’s come in below 200,000 in three of the last five months. Employers are also posting fewer job openings.
At the same time, inflation has decelerated markedly. The combination of a slowing but durable job market and tumbling inflation rates has raised hopes that the Fed can manage a so-called “soft landing” — slowing economic activity enough to control inflation without tipping the United States into a recession.
