The number of Americans applying for unemployment benefits fell to their lowest level in four months last week.
Jobless claims slid by 12,000, to 219,000, for the week of Sept. 14, the Labor Department reported Thursday. That’s fewer than economists’ expectations for 230,000 new filings.
Weekly filings for unemployment benefits, considered largely representative of layoffs, had risen moderately since May before this week’s decline. Though still at historically healthy levels, the recent increase signaled that high interest rates may finally be taking a toll on the labor market.
In response to weakening employment data and receding consumer prices, the Federal Reserve on Wednesday cut its benchmark interest rate by a half of a percentage point as the central bank shifts its focus from taming inflation toward supporting the job market. The Fed’s goal is to achieve a rare “soft landing,” whereby it curbs inflation without causing a recession.
“The focus has now decisively shifted to the labor market, and there’s a sense that the Fed is trying to strike a better balance between jobs and inflation,” says Stephen Innes of SPI Asset Management.
