By the end of July, unemployment benefit claims in the United States reached 250,000, suggesting a cooling of the labor market due to high interest rates. In August, the Department of Labor reported that from April 2023 to March of this year, there were 818,000 fewer jobs added than originally reported.
In contrast, in September, U.S. employers added a total of 254,000 jobs, alleviating some concerns about a potential slowdown in the labor market. Despite mixed signals, a solid hiring pace supported the growing economy.
In October, continued unemployment benefit claims decreased by 26,000, reaching 1.86 million. These revised indicators were seen as evidence of a steady slowdown in the labor market, leading the Federal Reserve to begin lowering interest rates.
The Department of Labor will publish its October jobs report amid uncertainty about the economic situation. Despite the decrease in unemployment claims last week, the Fed's focus has been on achieving a "soft landing" to reduce inflation without causing a recession.
During the first four months of 2024, unemployment benefit claims averaged 213,000 per week, before a rise in May. The Federal Reserve has taken steps to boost the labor market and keep inflation under control, leading to interest rate cuts and adjustments in its economic approach.
