Jobless Claims Tank by 10,000 Last Week to 230,000

Last week, the number of new jobless claims for insurance fell by 10,000 to 230,000, the lowest number in three weeks.

Claims for unemployment are a stand-in for layoffs. Despite the fact that both payroll growth and vacancies have decreased from last year's levels, firms have continued to hire new employees and post job openings at a strong rate this year. Layoffs have remained extremely low in the United States after an early-year spike in the technology and banking industries.

The numbers have been adjusted for the season. Before to seasonal adjustment, claims decreased by 15,466 to reach the lowest level since last November, below 200,000.

After the first week of benefits, continuing claims decreased by 9,000 to 1,702,000. This is low by historical norms and indicates that many employees who have been laid off by firms who are downsizing are quickly finding new positions. They have a one-week delay in reporting.

Initial claims for unemployment benefits are frequently a leading economic indicator, foretelling increases in the unemployment rate as well as the general economic trend. Claims this year have correctly predicted that a recession is not about to happen.

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