Current:Home > NewsFewer Americans file for jobless claims as labor market continues to shrug off higher interest rates -TradeWise
Fewer Americans file for jobless claims as labor market continues to shrug off higher interest rates
View
Date:2025-04-16 07:50:30
WASHINGTON (AP) — Fewer Americans applied for jobless benefits last week as the labor market continues to thrive despite the Federal Reserve’s efforts to cool it.
The Labor Department reported Thursday that filings for unemployment claims for the week ending April 6 fell by 11,000 to 211,000 from the previous week’s 222,000.
The four-week average of claims, which smooths out some of the week-to-week swings, fell by 250 to 214,250.
Weekly unemployment claims are considered a proxy for the number of U.S. layoffs in a given week and a sign of where the job market is headed. They have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in a bid to stifle the four-decade high inflation that took hold after the economy bounced back from the COVID-19 recession of 2020. Part of the Fed’s goal was to loosen the labor market and cool wage growth, which it believes contributed to persistently high inflation.
Many economists thought there was a chance the rapid rate hikes could tip the country into recession, but jobs have remained plentiful and the economy has held up better than expected thanks to strong consumer spending.
In March, U.S. employers added a surprising 303,000 jobs, yet another example of the U.S. economy’s resilience in the face of high interest rates. The unemployment rate dipped from 3.9% to 3.8% and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.
Though layoffs remain at low levels, companies have been announcing more job cuts recently, mostly across technology and media. Google parent company Alphabet, Apple, eBay, TikTok, Snap, Amazon, Cisco Systems and the Los Angeles Times have all recently announced layoffs.
Outside of tech and media, UPS, Macy’s and Levi Strauss also have recently cut jobs.
In total, 1.82 million Americans were collecting jobless benefits during the week that ended March 30, an increase of 28,000 from the previous week and the most since January.
veryGood! (11)
Related
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
- Iceland evacuates town and raises aviation alert as concerns rise a volcano may erupt
- What's Making Us Happy: A guide to your weekend viewing and reading
- Brazilian Influencer Luana Andrade Dead at 29 After Liposuction Surgery
- Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
- A Hawaii refuge pond has turned eye-catching pink and scientists think they know why
- 'Half American' explores how Black WWII servicemen were treated better abroad
- The Excerpt Podcast: Man receives world's first eye transplant
- Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
- How researchers, farmers and brewers want to safeguard beer against climate change
Ranking
- Paige Bueckers vs. Hannah Hidalgo highlights women's basketball games to watch
- SEC, Big Ten showdowns headline the seven biggest games of Week 11 in college football
- A Virginia high school football team won a playoff game 104-0. That's not a typo.
- SEC, Big Ten showdowns headline the seven biggest games of Week 11 in college football
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
- Mavericks to play tournament game on regular floor. Production issues delayed the new court
- Woman arrested after Veterans Memorial statue in South Carolina is destroyed, peed on: Police
- Hidden demon face lurking in 1789 painting uncovered by restorers
Recommendation
How to watch new prequel series 'Dexter: Original Sin': Premiere date, cast, streaming
Big Ten bans No. 2 Michigan coach Jim Harbaugh from final 3 games over alleged sign-stealing scheme
Astronaut Frank Borman, commander of the first Apollo mission to the moon, has died at age 95
Alo Yoga Early Black Friday Sale Is 30% Off Sitewide & It’s Serving Major Pops of Color
The Super Bowl could end in a 'three
Gregory Yetman, wanted in connection with U.S. Capitol assault, turns himself in to authorities in New Jersey, FBI says
Pakistani police cracking down on migrants are arresting Afghan women and children, activists claim
What's Making Us Happy: A guide to your weekend viewing and reading