Applications for US jobless benefits fall to lowest level in more than 8 months

Fed continues raising rates but robust labor market holds steady.

US jobless claims fell by 13,000 to 198,000 for the week ending October 14, the lowest level in eight months, indicating companies are retaining employees despite rising interest rates.
However, the number of Americans remaining on unemployment benefits, known as 'continuing claims', rose to its highest level in three months, indicating those already unemployed may be struggling to find new work.
Despite increased interest rates aimed at slowing the economy and job market, the labor market has been resilient, with September seeing the addition of 336,000 jobs, the highest in eight months.
American employers posted 9.6 million job openings in August, the first increase in three months, despite some layoffs predominantly in the technology sector.
The Federal Reserve has raised its benchmark rate 11 times since March 2022, aiming to cool hiring and reduce wages; however, consumer spending remains robust due to many homeowners' savings from refinanced mortgages during the low-rate period of 2021.