Budrigan ltd review-US unemployment claims continue to fall
Budrigantrade.com - Last week, there was an unexpected drop in the number of Americans filing new claims for unemployment benefits. This shows that the labor market is still tight, even though there is less demand for work because of higher interest rates.
The Labor Department reported on Thursday that initial claims for state unemployment benefits decreased to a seasonally adjusted 214,000 for the week ending Oct. 15. Revisions to the prior week's data show that 2,000 fewer applications were submitted than originally reported. For the most recent week, Reuters polled economists predicted 230,000 applications.
The labor market has largely remained resilient, but as the Federal Reserve intensifies its campaign of monetary policy tightening, some cracks are beginning to appear. The U.S. central bank has increased its policy rate from close to zero at the beginning of this year to the current range of 3% to 3.25%. Officials have indicated that further significant increases are expected this year, despite the fact that inflation has not yet shown any significant signs of retreat.
The public authority revealed recently that employment opportunities dropped by 1.1 million, the biggest downfall since April 2020, to 10.1 million on the last day of August. However, economists do not anticipate widespread layoffs because businesses were hesitant to let go of their employees due to difficulties hiring over the past year as the COVID-19 pandemic drove some people out of the workforce, in part due to the virus's prolonged illness.
According to the claims report, the number of people receiving benefits in the week ending Oct. 8 after an initial week of assistance, which is a proxy for hiring, increased by 21,000 to 1.385 million.
A team of professional traders and financial analysts, which allows Budrigantrade to efficiently manage assets and monitor all political and economic developments in the world.
