It’s been awhile since applications for unemployment benefits have fallen to this level.
According to statistics released Thursday by the U.S. Department of Labor, the number of Americans filing for unemployment benefits fell to 187,000 for the week ending Jan. 13. Not only was that a drop of 16,000 applicants, but it represented the lowest number of such applications since September 2022.
The four-week average of claims also fell, dropping by 4,750 to 203,250. That’s the lowest four-week average in almost a year.
Overall, 1.81 million Americans were collecting jobless benefits during the week that ended Jan. 6, a decline of 26,000 from the previous week.
Weekly unemployment claims have remained at low levels despite high interest rates and elevated inflation. To fight that inflation, the Federal Reserve raised interest rates 11 times since March 2022.
Though inflation has eased considerably in the past year, the Labor Department reported last week that overall prices rose 0.3% from November and 3.4% from 12 months earlier as the Fed continues to try to push it down to its 2% target.
The Fed has left rates alone at its last three meetings and most economists are forecasting multiple rate cuts this year, the Associated Press reported.
