Unemployment Claims Hit Seven-Month Low Amid Job Growth Rebound

Unemployment claims in the U.S. have decreased to a seven-month low, indicating a recovery in job growth for November. Despite challenges like hurricanes and strikes, increased unemployment rolls suggest prolonged job seeking periods. The labor market's slack may influence the Federal Reserve's interest rate decisions.

Unemployment claims in the U.S. have dropped to a seven-month low, hinting at a possible bounce-back in job growth this November. Applications filed for unemployment benefits fell by 6,000 to a seasonally adjusted 213,000 as of the week ending November 16, marking the lowest level since April.

The Labor Department's latest report shows a swelling of unemployment rolls to levels last witnessed in late 2021. Despite recent challenges, including hurricanes and aerospace strikes, layoffs remained minimal, softening the labor market impact from slow hiring. Carl Weinberg, chief economist at High Frequency Economics, highlighted that the labor market is softening without signs of recession.

The Fed's potential rate cuts loom on the horizon, with the full picture dependent on November's job data. The U.S. central bank could consider additional monetary policy easing, following previous rate adjustments earlier this year, if employment figures reveal further economic softness.

(With inputs from agencies.)