The number of Americans applying for unemployment insurance fell last week as the job market remains strong despite some weakness elsewhere in the economy.
Unemployment insurance claims for the week ending April 22 dropped by 16,000 to 230,000, the Labor Department reported Thursday.
The four-week moving average, which smooths out weekly fluctuations, fell by 6,000 to 236,000. At the beginning of the year there were around 200,000 weekly requests and they have gradually increased.
In total, 1.86 million people received unemployment benefits in the week ending April 15, 3,000 fewer than the previous week.
The weekly numbers reflect the layoffs and continue to show that American workers enjoy unusual job security despite rising interest rates, economic uncertainty and fears of an impending recession.
The US labor market remained healthy despite other weaknesses in the national economy. At 3.5% last month, unemployment was just above January’s half-century low of 3.4%. Employers added 236,000 jobs in March, down from 472,000 in January and 326,000 in February, a figure that remains solid by historical standards.
Federal Reserve policymakers fear a tight job market will put pressure on wages and prices in general. The Fed raised its key interest rate nine times in just over a year. Inflation has declined since it hit a four-decade high last year. But March’s 5% year-on-year inflation rate remained well above the central bank’s 2% target.
The Fed hopes to achieve a so-called soft landing, reducing growth just enough to control inflation without causing a recession. Economists are skeptical and many expect the US to enter a recession by the end of the year.
The Commerce Department reported on Thursday that the US economy experienced a sharp slowdown from January to March, shrinking at an annual pace of just 1.1% as higher interest rates hit the housing market and firms have reduced inventories.
