US labour market continues to be strong
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Loading... - Augustina Abril
- 09 Mar 2023
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Labour market resilience and stubbornly high inflation have increased the odds the US Federal Reserve will continue to raise interest rates.
The number of Americans filing new claims for unemployment fell again last week, pointing to sustained labour market strength and adding to financial market fears that the United States Federal Reserve could keep hiking interest rates for longer.
Those worries were further heightened by another report from the US Department of Labor on Thursday showing labour costs grew much faster than previously estimated in the fourth quarter.
The labour market remains tight despite rising risks of a recession, contributing to keeping inflation elevated via solid wage gains.“The labour market shows no fresh signs of deterioration with minimal job layoffs despite the news of big tech firings the last several months, and this will harden the resolve of Fed officials to slow economic demand down with higher interest rates,” said Christopher Rupkey, chief economist at FWDBONDS in New York.
Initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 190,000 for the week ended February 25, the Labor Department said. It was the seventh straight week that claims remained below 200,000. Economists polled by Reuters had forecast 195,000 claims for the latest week.
