Weekly Jobless Claims Drop to Lowest Level Since September 2022

Weekly Jobless Claims , Drop to Lowest Level Since , September 2022.

CNBC reports that the labor market has started 2024 with surprising resiliency, posting an unexpected drop in initial jobless claims. For the week ending January 13, initial filings for unemployment insurance totaled 187,000, the lowest amount since September of 2022.

According to the latest Labor Department data, the total marked a 16,000 decline from the week before and came in under Dow Jones estimates.

The labor market has remained resilient despite the Federal Reserve's attempts to slow the economy with an interest rate-hiking campaign.

Not only did weekly claims drop, but continuing claims also saw a surprising decrease of 26,000, bringing the total down to 1.806 million.

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Employers may be adding fewer workers monthly, but they are holding onto the ones they have and paying higher wages given the competitive labor market, Robert Frick, corporate economist at Navy Federal Credit Union, via CNBC.

Another report, released on January 18, showed the housing market improving with building permits increasing by 1.9% to a total of 1.495 million.

CNBC reports that the news comes one day after the Fed released its periodic summary of economic conditions, which detailed mostly stagnant activity since late November.

The central bank's 'Beige Book' report noted signs of a "cooling labor market" with lower wage pressures.

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The central bank's 'Beige Book' report noted signs of a "cooling labor market" with lower wage pressures.

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The report also highlighted the impact of higher rates on the housing market, which could improve in the future if the Fed decides to ease its efforts to tame inflation.