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Americans filing for unemployment benefits remains historically low amidst high interest rates and elevated inflation

Published: 02 May 2024 at 14:17

Finance & Economics

The number of Americans applying for unemployment benefits was unchanged last week at 208,000, the fewest since mid-February, with the four-week average falling to 210,000. Despite concerns of recession due to rate hikes, the labor market remains resilient with low layoffs. U.S. added 303,000 jobs, bringing the unemployment rate to 3.8%. Signs of market softening seen as job openings decline, leading to recent job cuts in tech and media sectors. 1.77 million Americans were collecting jobless benefits, unchanged from the previous week.

DEEP DIVE


US Job Openings Decline in March but Remain at Historically High Levels


In March, US job openings decreased to 8.5 million, the lowest level in over three years, while the number of Americans quitting their jobs also dropped to the lowest since January 2021. Despite the decline, job openings are still historically high. The Federal Reserve raised interest rates 11 times since March 2022 to combat inflation, but the economy continued to grow, with unemployment staying below 4% for 26 consecutive months. Economists are hopeful for a 'soft landing' scenario where inflation decreases and the economy remains stable.

Americans filing for unemployment benefits remains historically low amidst high interest rates and elevated inflation Americans filing for unemployment benefits remains historically low amidst high interest rates and elevated inflation

SOURCES

ABC News

Number of Americans applying for jobless claims remains historically low

ABC News

Yahoo! News

US labor market still tight; productivity falters in first quarter

Yahoo! News

AP News

Number of Americans applying for jobless claims remains historically low

By MATT OTT

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US Job Openings Decline in March but Remain at Historically High Levels

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