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According to Labor Department data on Thursday, the number of Americans filing for unemployment insurance unexpectedly edged lower last week.
Initial weekly jobless claims fell from the previous unrevised number of 192,000 to a seasonally adjusted 191,000 for the week ending on March 18. Economic experts had predicted that the number would increase to 197,000.
The four-week moving average, which considers weekly volatility, also slightly increased from 196,500 to 196,250.
For the week ending March 11, continuing claims increased by 14,000 to 1.694 million, yet the low number might suggest that employees easily locate new positions.
Initial claims have remained within a relatively narrow band throughout 2023 and are still low by historical standards despite a wave of layoffs at significant technological companies.
The head of the Federal Reserve, Jerome Powell, did point out on Wednesday that the prolonged instability in the financial services industry will probably result in a slight drop in demand on the job market.
The statement was made simultaneously that the Fed increased borrowing costs by 25 basis points to their current range of between 4.75% and 5.00%. According to economists, the tighter credit environment might cause bank lending to slow down, which could then affect households and small companies, which are a major factors in job development in the U.S.
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