Applications for unemployment benefits in the United States fell last week to their lowest level since April.
Initial claims for the state of unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ending 22 November.
This is lower than the forecasted 225,000 by Reuters.
However, continuing claims, a measure for the number of people receiving benefits, grew to 1.96 million in the previous week, according to Labor Department data released Wednesday.
This data indicates that employers are largely retaining current employees while pulling back on hiring new ones.
Economists say this “no hire, no fire” labour market has been driven by President Donald Trump’s aggressive trade and immigration policies.
However, some companies, like Amazon, announced they will be increasing the number of job cuts as they integrate artificial intelligence into their business.
Recurring claims have been on an upward trend since September and remain near levels last seen when the labour market was recovering from the pandemic.
While new claims have subsided, it seems it's become harder for the unemployed to find a new job.
This comes as the Consumer Confidence Index falls, indicating a pessimistic view of the labour market.
