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 has maintained its stability, while home sales have declined to a 16-year low. Initial claims for state unemployment benefits rose by 9,000 to 200,000, consistent with a stable labor market, allowing the Federal Reserve to focus on fighting inflation. The unemployment rate decreased to 4.1% in October from 4.2% in September.
Despite the Middle East conflict, firms have continued to retain labor, with economists expecting layoffs to remain low through the fourth quarter. The smaller workforce, due to retirements and immigration crackdowns, could be a key factor in the historically low level of unemployment claims. The median duration of unemployment rose to 11.9 weeks, the longest since November 2021, indicating a longer job search period.
While businesses have been cautious about increasing headcount, uncertainty from the US-Israeli war and the adoption of AI have also contributed to the job market's resilience. Home sales fell to 3.75 million units in October, the lowest since August 2010, as mortgage rates increased, making homeownership less affordable.
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- US jobs market holds firm, home sales slump to 16-year low freemalaysiatoday.com