Weekly jobless claims decline more than expected |
The number of Americans filing for jobless benefits fell last week in a sign that the labor market remains strong. The Labor Department reported that applications fell 16,000 in the seven days to January 25th, well below the 220,000 claims expected by economists polled by Reuters. The four-week moving average dipped 1,000 to 212,500 while continuing claims, reported with a one-week lag, were down 42,000 to 1.858m. "Initial claims surprised to the downside in the week ended January 25, as the recent increase in claims in California likely related to the fires in Los Angeles was largely reversed," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics. The jobless claims data continue to be consistent with a labor market characterized by low layoffs and a slow pace of hiring," she noted, adding: "Despite the low hiring rate, the Fed thinks the labor market is healthy enough to withstand a slower pace of rate cuts, lending some risk to our forecast for three cuts this year."
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