The number of Americans applying for unemployment benefits was unchanged last week, remaining at a historically low level, a sign that the US job market remains strong despite higher interest rates.
Jobless claims were steady at 209,000 for the week ended Oct. 7, according to a Labor Department report on Thursday. The four-week average data for claims, declined by 3,000 to 206,250.
When the Federal Reserve began raising its benchmark interest rate last year to moderate sharply rising consumer prices, many economists expected the United States to slip into recession.
Still, the economy and job market have remained strong even as higher rates have gradually reduced inflation from the four-decade highs reached in 2022. The combination of reduced inflationary pressures and healthy job hiring raises hopes that the Fed can tackle inflation without trigger an economic downturn.
"Overall, the rate of layoffs remains low and demand for jobs remains high," said Rubeela Farooqi, chief US economist at High Frequency Economics. "Although the Fed has taken aggressive action to weaken labor market conditions, companies are not shedding workers quickly."
Overall, 1.7 million people were receiving unemployment checks in the week ending Sept. 30, up by 30,000 from the previous week.
