US Unemployment Claims Drop Sharply Amid Higher Interest Rates

Despite the slowdown in hiring, the job market remains resilient with inflation rates falling.

US unemployment claims fell sharply last week, with jobless claims dropping by 24,000 to 209,000.
The four-week moving average of claims, which smooths out week-to-week volatility, fell by 750 to 220,000.
Despite higher interest rates, the job market and economic growth remained surprisingly resilient.
Hiring has slowed from the pace of 2021 and 2022, with monthly hiring averaging a still-solid 239,000 in 2023, but coming in below 200,000 in three of the last five months.
Inflation has decelerated markedly, with year-over-year inflation down to 3.2% last month, though it remained above the Fed’s 2% target.