Business
Unemployment Claims Dip to 192,000, Shows No Signs of Layoffs Increasing
Despite news stories concerning layoffs in the technology industry, unemployment claims dip as there is still a huge demand for American workers.
According to the Labor Department, new claims for unemployment insurance, a proxy for layoffs, fell to 192,000 on Thursday, not far from historic lows.
During eight of the past nine weeks, the number of new unemployment claims has been fewer than 200,000. Early in March, claims increased to 212,000, but this was probably due to a winter break in New York’s public schools.
In the week prior to last, there were 1.68 million people getting unemployment benefits following their first week of being unemployed. This number has a one-week delay in its reporting.
Initial claims’ 4-week moving average, which many economists consider to be a more reliable indicator of changes in unemployment, dipped by 750 to 196,500.
The extremely low level of unemployment claims this year suggests that the labor market has not yet been significantly impacted by the Federal Reserve’s quick rate increases over the previous 11 months. Jerome Powell, the chairman of the Fed, and other Fed officials have emphasized numerous times how the labor market is still dangerously unbalanced in favor of overwhelming demand for workers. There is concern that this could cause salaries to rise too quickly and fuel inflation.
Up Next:
