231,000 US jobless claims decrease, despite rising interest rates and increased labor supply.

The US labor market remains healthy as jobless claims decreased to 231,000 last week, according to the Labor Department. Despite elevated interest rates, the number of Americans filing for unemployment benefits has remained low, with weekly filings for unemployment benefits serving as a proxy for layoffs. The unemployment rate has risen for four consecutive months, partly due to an immigration-induced increase in labor supply. The Federal Reserve is expected to start cutting interest rates at its next meeting in September, as inflation steadily approaches the 2% target.

August 29, 2024
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