The number of Americans filing new claims for unemployment benefits reached a four-month low last week, suggesting continued job growth in September.
The Labor Department reported that jobless claims fell by 12,000 to a seasonally adjusted 219,000 for the week ending September 14, marking the lowest level since mid-May.
Additionally, continuing claims, or the number of people receiving benefits after an initial week of aid, fell by 14,000 to 1.829 million, indicating a strengthening labor market.
While the labor market remains resilient, challenges persist in the housing sector.
A report from the National Association of Realtors revealed that existing home sales dropped by 2.5% in August, reaching an annual rate of 3.86 million units, the lowest in 10 months.
Despite improving supply, persistently high home prices continue to deter potential buyers. The median home price rose 3.1% year-over-year to $416,700, the highest on record for any August.
The Federal Reserve's recent interest rate cut by 50 basis points, marking the first reduction since 2020, aims to sustain the strong labor market and support economic growth.
However, Fed Chair Jerome Powell acknowledged that while the central bank can influence borrowing costs, it cannot directly resolve the housing shortage.