Applications for US unemployment insurance last week fell slightly, hovering around historically low levels as the labor market holds strong despite a weakening economy.
Initial unemployment claims decreased by 1,000 to 217,000 in the week ended Oct. 29, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 220,000 new applications.
The still-low level of jobless claims reinforces what Federal Reserve Chair Jerome Powell described as an “overheated” jobs market in which demand for workers far exceeds supply. The central bank is trying to soften labor conditions in order to cool inflation, but Powell said Wednesday that hasn’t happened yet in an “obvious” way.
