The U.S. labor market appears to remain fairly stable, which could be a factor in what the Federal Reserve decides to do about interest rates.
First-time applications for U.S. unemployment benefits rose slightly last week, according to figures released by the U.S. Labor Department. The report, released Thursday, also showed the number of people collecting unemployment checks in mid-March was the lowest in nearly two years.
According to a report from Reuters, part of the decline was likely due to people exhausting their eligibility for aid, which is limited to 26 weeks in most states.
The job market remains in what economists describe as a “low-hire, low-fire” state, Reuters reported. Despite the relative calm, economists expected the labor market would take a hit from the U.S.-Israeli war with Iran, which has sent oil prices surging.
“It takes time for companies to recognize what a shock like this means for the economy, and then to have the conviction needed to start shedding workers,” Carl Weinberg, chief economist at High Frequency Economics, told Reuters. “Things will decay, we are sure. However, they have not started to decay yet.”
Initial claims for state unemployment benefits increased to 210,000 for the week ended March 21, an increase of 5,000 claims. Economists polled by Reuters had forecast 210,000 claims for the latest week. Claims have been tucked in a 201,000-230,000 range this year amid low layoffs.
