By James Myers, OAN Staff
Thursday, August 8, 2024 8:20 a.m.
The number of Americans filing new claims for unemployment benefits last week fell more than expected, easing fears for now about a labor market collapse.
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The Labor Department said Thursday that jobless claims for the week ending Aug. 3 fell by a seasonally adjusted 17,000 to 233,000.rdThis was the biggest drop in almost a year.
Economists had expected jobless claims to reach 240,000 in the latest week.
The latest jobless claims figures came on the heels of a weak jobs report on Friday that showed hiring was slowing at an alarming pace, prompting calls for the Federal Reserve to cut interest rates before its next scheduled meeting in September.
Jobless claims in recent weeks have neared their highest levels this year, while layoffs remain low.
Government data released last week showed layoffs fell to the lowest level in nearly two years in June. The labor market slowdown comes as weak hiring comes as the Federal Reserve plans to raise interest rates in 2022 and 2023.
Meanwhile, strong consumer demand and a resilient labor market have averted the recession that many economists predicted during the Federal Reserve’s prolonged rush to raise interest rates that began in March 2022.
Moreover, interest rate futures contracts reflect a nearly 70% probability that the Fed will begin cutting borrowing costs in September by 50 basis points more than usual.
The number of people who received benefits after the start of the assistance week, a measure of employment, increased by 6,000 in the week ended July 27 to a seasonally adjusted 1.875 million.NumberThis was revealed in the latest billing report.
The four-week average of claims increased by 2,500 to 238,000.
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