US jobs market holds firm, home sales slump to 16-year low
Economists expect layoffs to remain low through the end of the year, though seasonal volatility related to the holiday season could cause some spikes in the claims data.
The US jobs market remained stable in November, while home sales declined to a 16-year low. Initial claims for unemployment benefits rose by 9,000 to 200,000 in the week ending November 7, consistent with a stable labor market. The Federal Reserve can now focus on fighting inflation. Economists expect low layoffs through the end of the year, though seasonal volatility may cause some spikes.
Nonfarm payrolls surged in October, and the unemployment rate fell to 4.1% from 4.2% in September. Despite the Middle East conflict, which is boosting inflation, firms are holding onto labor. Olivia Cross, a senior US economist, predicts layoffs will remain low through the fourth quarter but may increase next year due to financial tightening and AI adoption.
The median duration of unemployment rose to 11.9 weeks in October, the longest since November 2021. House prices are elevated, but sales fell 5.5% in October to 3.75 million units, the lowest since August 2010. Mortgage rates, which jumped above 7% in late August, are making home buying difficult. The NAR's Housing Affordability Index declined to 100.7 in October 2025.
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- US jobs market holds firm, home sales slump to 16-year low freemalaysiatoday.com
