In further evidence that the US labour market remains resilient despite the Fed’s hawkish tightening cycle, latest data from the Department of Labour showed that the number of Americans filing for first-time unemployment benefits surprisingly fell 1,000 to a seasonally adjusted 194,000 claims for the week ending on February 11. Consensus forecasts amongst economists polled by Reuters were calling for 200,000 claims last week.
The increase means that the total number of Americans claiming unemployment benefits now sits at 1.696 million. The unexpectedly lower figure also comes against mass layoffs across the tech sector and other industries particularly sensitive to higher borrowing costs. Conversely, though, some firms are likely exercising cation when it comes to furloughing employees, after undergoing issues with recruiting new workers during the pandemic.
The labour market robustness will likely reinforce a continuation of the Fed’s rate hikes throughout the first half of the year.
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