US jobless claims below 200,000 for 3rd week as layoffs fall: Will Fed raise rates?
US jobless claims stayed below 200,000 for three weeks. Will low layoffs and rising factory prices push the Federal Reserve to raise interest rates in October?
Initial claims for US unemployment benefits dropped to 197,000 in the week ending September 26, marking the third consecutive week below the 200,000 threshold. Economists anticipate that low layoffs could be threatened by high energy and material costs, stemming from the US-Israeli conflict with Iran and record-high diesel prices.
Despite this, no immediate layoffs have been reported. Challenger, Gray & Christmas reported a 18% decrease in announced layoffs in September compared to the previous year, and a 43% decline in the third quarter. However, hiring plans are still significantly lower compared to the same period a year ago, marking the lowest total since 2011.
The Federal Reserve's latest rate hike, the first in three years, may face reduced chances of further increases in October due to reduced inflation concerns. While the job market seems stable, some workers are experiencing prolonged unemployment due to weak hiring plans and a lack of job availability.
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