The number of Americans applying for jobless aid last week retreated significantly after surging to a nearly four-year high a week earlier.
US filings for unemployment benefits for the week ending September 13 fell by 33,000 to 231,000, the Labour Department reported Thursday. That’s less than the 241,000 analysts surveyed by the data firm FactSet had forecast.
The previous week, applications surged to 264,000, their highest level since the week of October 23, 2021. Last week’s figure was revised up by 1,000.
Concerns about the health of the American labour market led the Federal Reserve to cut its key interest rate by a quarter-point on Wednesday as many expected.
The rate cut is a sign that the central bank’s focus has shifted quickly from inflation to jobs as hiring has grounded nearly to a halt in recent months. Lower interest rates could reduce borrowing costs for mortgages, car loans, and business loans, and boost growth and hiring. The problem is that it can also exacerbate
