It appears that America’s labour market is still strong despite rising economic uncertainty and threats of a recession.
Latest data from the Labour Department shows that applications for unemployment benefits were down for the second straight week, suggesting that businesses continue to retain employees even though the economy is on the brink of what could be a recession. Initial jobless claims fell by 2,000 to 243,000 for the week ending on August 20, against economists’ forecasts calling for an increase of another 252,000 new applications. Meanwhile, continuing claims, which fall behind the headline figure by one week, dropped to 1.42 million.
The drop in jobless claims shows that America’s labour market remains strong as companies attempt to hire and keep employees against an economic landscape riddled with worker shortages. But, some industries— particularly the technology sector— are showing signs of slowing down amid surging inflation and rising interest rates and are putting a freeze on hiring or letting go some of their staff altogether.
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