US weekly jobless claims near 57-year lows amid low layoffs

The United States saw a drop in weekly jobless claims to near 57-year lows last week, indicating improving job growth after September's poor performance. The Labor Department's report revealed a steady 194,000 initial claims for state unemployment benefits, falling 6,000 from the previous week. This marked the sixth consecutive week of claims at or below 200,000, nearly reaching the low of 189,000 observed in mid-July.

Economists attribute this trend to robust domestic demand, strong profit growth, and fewer workers available due to retirements and Trump's immigration crackdown. However, concerns exist that financial tightening and higher interest rates resulting from the ongoing Middle East conflict could impact the labor market next year. The administration's immigration policies may be limiting the availability of workers in certain industries, making them reluctant to let employees go.

The four-week moving average of claims settled at a record low 197,750, showing a drop of 1,000 from the previous week. Despite the positive trend, some experts worry that tightening financial conditions and higher interest rates could dampen labor market growth in the future.