US Weekly Jobless Claims Decline Further  

 

• The number of Americans filing new unemployment claims fell again last week, pointing to sustained labour market strength that could fuel further rate hikes from the Federal Reserve.
• Initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 190,000 for the week ended Feb. 25, the Labour Department said on Thursday. It was the seventh straight week that claims remained below 200,000.
• There is still no sign that high-profile layoffs, mostly in the technology sector, have had a material impact on the labour market, with economists and policymakers saying these companies over-hired during the pandemic and were not representative of the overall economy. Economists also speculate that severance packages were keeping some laid-off workers from filing claims.
• The unemployment rate, at 3.4% in January, was the lowest in more than 53 years. Economists expect strong employment growth in February, though the pace probably slowed from January's blockbuster 517,000 jobs.
• Labour market resilience and stubbornly high inflation have increased the odds of the Fed raising interest rates at least three more times this year instead of twice. The U.S. central bank has hiked its policy rate by 450 basis points since last March from near zero to a 4.50%-4.75% range, with the bulk of the increases between May and December.

(Source: Reuters)