NEWS
Unemployment Claims Fall To Lowest Level Since February
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The number of Americans applying for unemployment last week fell to the lowest level since February, despite rising interest rates.
The U.S. Department of Labor on Thursday reported that there were 216,000 jobless claims in the week ending Sept. 2, down 13,000 from the week before.
That news comes after the Bureau of Labor Statistics last week reported that the U.S. economy added 187,000 jobs in August, after adding about the same number in July. Unemployment rose slightly to 3.8% in August, according to the bureau, after hovering between 3.4% and 3.7% for more than a year.
The numbers reflect a surprisingly resilient labor market considering the Federal Reserve’s battle against inflation over the past two years, as they raised interest rates repeatedly in an effort to slow hiring.
The Fed has been raising interest rates since March of last year, in an effort to bring inflation down to its 2% target. In July, the Fed approved another interest rate hike, bringing the target range for the federal funds rate to 5.25 to 5.5 percent, the highest level since 2001.
“The strong labor market continues, resulting from decreasing labor supply and increased demand,” said Bradley Schurman, founder and CEO of the demographic strategy firm, The Super Age, which helps public and private-sector organizations navigate disruptive population change.
“This labor market will continue to experience lower jobless claims because there are more opportunities to work across nearly every sector. Wages are also increasing, further motivating people to find paying work,” Schurman said.
“I think people still have lots of confidence they will find a job quickly with almost 10,000,000 jobs available, so they aren’t going through the hassle of filing for unemployment,” said Ted Jenkin, founder and CEO of Atlanta-based oXYGen Financial.
“Even though interest rates have grown dramatically and the economy is feeling some headwinds, businesses are still hiring at a brisk pace and this gives Americans the sense they can find a job quickly,” Jenkin said.
TMX contributed to this article.
