?States reported that 219,000 workers filed for new unemployment benefits during the week ending Oct. 1. The total is an increase of 29,000 from the previous week’s revised level and just over the pre-pandemic average of 218,000 in 2019.
The number of workers continuing to claim unemployment benefits—1.3 million—had been steadily rising this year but is still well below the pre-pandemic average of 1.7 million. The consistently low number of jobless claims come amid efforts by the Federal Reserve to cool the economy and bring down inflation, which is running near its highest levels since the early 1980s.
The U.S. labor market has remained resilient despite some slowing in other areas of the economy. With many businesses still experiencing worker shortages, many organizations are choosing to slow down hiring but retain their workforce rather than conduct layoffs, economists have said. Job openings fell by over 1 million in August. The unemployment rate in August rose to 3.7 percent from a 50-year low in July, but the increase included a surge in the number of people actively looking for work, a sign of a healthy labor market.
Meanwhile ADP reported this week that private-sector payrolls grew by 208,000 in September and annual pay went up 7.8 percent for the month, adding to inflation worries.
The U.S. Labor Department’s employment report will be issued tomorrow.