The number of Americans applying for jobless benefits retreated significantly last week after surging to a nearly four-year high a week earlier.
U.S. initial jobless claims fell by 33,000, to 231,000, for the week ending Sept. 13, the Labor Department reported Thursday. That’s less than the 241,000 that analysts surveyed by the data firm FactSet had forecast.
The previous week, applications surged to 264,000, their highest level since the week of Oct. 23, 2021. Last week’s figure was revised up by 1,000.
Concerns about the health of the American labor market led the Federal Reserve to cut its key interest rate by a quarter-point on Wednesday as many expected.
The rate cut is a sign that the central bank’s focus has shifted quickly from inflation to jobs as hiring has grounded nearly to a halt in recent months. Lower interest rates could reduce borrowing costs for mortgages, car loans, and business loans, and boost growth and hiring. The problem is that it can also exacerbate inflation, which remains above the Fed’s 2% target.
Last week, the Bureau of Labor Statistics issued a massive preliminary revision of U.S. job gains for the 12 months ending in March, further evidence that the labor market has not been as strong as previously thought.
