U.S. Jobless Claims Drop to 16-Month Low

Labor market remains resilient amid high interest rates and inflation, with unemployment rate below 4% for 23 consecutive months.

Jobless claims in the U.S. have fallen to the lowest level in 16 months, with 187,000 claims for the week ending January 13, a decrease of 16,000 from the previous week.
Continuing claims, filed by Americans receiving consecutive unemployment benefits, also fell to 1.8 million for the week ended January 6, a decrease of 26,000 from the previous week.
The labor market has remained resilient despite high interest rates and inflation, with the unemployment rate staying below 4% for 23 straight months.
The Federal Reserve, which has been trying to cool the economy through aggressive interest rate hikes, has left rates alone at its last three meetings.
Despite predictions of a recession due to the rapid rate hikes in 2022, the economy and job market have remained resilient, raising hopes for a 'soft landing' where rates are raised just enough to bring down prices without causing a recession.