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flag U.S. jobless claims dropped to 198,000, signaling labor market strength despite weak hiring and rate cuts.

flag Initial jobless claims in the U.S. fell to 198,000 for the week ending January 10, below the expected 215,000 and marking the lowest level since November, according to the Labor Department. flag The decline, which surprised economists, suggests continued labor market strength with low layoffs, despite weak hiring in December—just 50,000 jobs added—and a drop in job openings to 7.1 million. flag The unemployment rate edged down to 4.4%, its first decline since June, while continuing claims fell to 1.88 million. flag Economists caution that seasonal adjustments may be affecting the data, and ongoing uncertainty from trade policies, high interest rates, and AI-related shifts is dampening hiring. flag The Federal Reserve recently cut its benchmark rate for the third time, citing concerns over hidden labor market weaknesses.

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