US labor market stable as layoffs remain low
Key takeaways
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- Fewer people were collecting unemployment checks towards the end of April, though that drop could be the result of some people exhausting their eligibility, which is limited to 26 weeks in most states.
- Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 200,000 for the week ended May 2, the Labor Department said.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize. The number of Americans filing claims for unemployment benefits rose moderately last week amid low layoffs, underscoring labor market stability and strengthening financial market expectations that the Federal Reserve will not cut interest rates this year.
The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy’s health, continued to show no clear signs of labor market stress from an oil price shock triggered by the U.S.-Israel war with Iran.
Fewer people were collecting unemployment checks towards the end of April, though that drop could be the result of some people exhausting their eligibility, which is limited to 26 weeks in most states. Low levels of layoffs are anchoring the labor market. Economists remain wary of downside risks because of the war’s disruption of oil shipments through the Strait of Hormuz.