U.S. jobless claims drop to 217,000 last week after rising for two weeks

Initial jobless claims in the United States fell to 217,000 last week, after rising in the previous two weeks amid a slowing economy, the U.S. Labor Department reported on Thursday.

In the week ending Nov. 4, the number of Americans filing for unemployment benefits decreased by 3,000 from the previous week’s revised level of 220,000, according to a report released by the department’s Bureau of Labor Statistics.

The report showed that the four-week moving average for initial jobless claims, a method used to smooth out data volatility, increased by 1,500 to 212,250.

Overall, jobless claims have been on a declining trend since summer, indicating robust economic growth and labor market resilience. However, recent data suggests that the labor market is moderating.

According to data released last week, the United States added 150,000 jobs in October. This figure is roughly half of the previous month’s gain of 297,000 jobs, raising questions about a potential hiring slowdown.

October recorded the weakest gains since June, at a time when 33,000 workers in the auto industry remained on the payroll due to ongoing strikes.

Desmond Lachman, a senior fellow at the American Enterprise Institute and a former official at the International Monetary Fund, told Xinhua: “There has been a marked slowing in new jobs created.”

The weaker-than-expected jobs numbers in October “suggest that the labor market is softening in a way that should please the Federal Reserve,” Lachman said.

(Cover: People walk past San Francisco City Hall and United Nations Plaza, U.S., August 19, 2023. /CFP)