Article Rewrite
Jobless Claims Dropping Again, Showing Strong Labor Market
Per Refinitiv's estimation, the number of jobless claims reached its lowest level in over three months, surpassing the revised figure of 228,000 from the previous week and falling short of economists' predictions of 240,000.
The Department of Labor reported a rise of 36,000 in ongoing jobless claims during the week ending on September 3, reaching a figure of 1.47 million – the highest since nearly five months.
“We don't expect claims to keep falling, but we also don't anticipate a significant surge,” Nancy Vanden Houten, chief US economist at Oxford Economics, stated to CNN Business. “As the economy is burdened by rising interest rates, prices are decreasing, but the labor market is only beginning to relax. Therefore, employers will likely delay dismissals and slow down hiring.”
Vanden Houten added that she believes that the ongoing claims will better align with initial claims and that the recent surge might reflect the volatility of non-seasonally adjusted estimates in California.
Despite reductions in other sectors, the US labor market remains robust, evidencing signs of slowing down. According to the Bureau of Labor Statistics, 315,000 jobs were added in August, marking the second-lowest monthly total in 16 months. However, employment growth in August exceeded the pre-pandemic level, with an average monthly employment of roughly 200,000.
Despite layoff announcements by major companies in sectors such as technology and retail, numerous job openings persist. In July, the number of available jobs stood at 11.2 million, almost twice the number of unemployed job seekers.
Preliminary week-to-week figures for initial jobless claims are subject to change.
Related Articles
Businesses may find themselves hesitant to reduce their workforce or slow down hiring due to the robust labor market, which exhibits signs of weakening. Despite the economical downturn in other industries, the business environment remains resilient.
This strength is reflected in the availability of nearly twice as many job openings as unemployed job seekers. While some sectors, like technology and retail, face layoffs, the overall trend highlights a tight labor market.
Source:
Enrichment Insights (Integrated):
As the labor market shows signs of stable growth, unemployment remains comparatively low, with total nonfarm employment increasing by 143,000 jobs in January 2025, slightly below expectant levels. However, this growth still indicates a robust labor market.
Healthcare and social assistance sectors have experienced significant growth, with job gains of at least 30,000 in January 2025. Government employment has also shown strength, seeing a gain of 32,000 jobs in January 2025, as has retail trade, adding 34,300 jobs in the same month.
Despite some layoffs, in particular within the tech sector, the number of initial unemployment claims has been on the decline. Additionally, due to a strong labor market, economic recovery, and employers' efforts to retain their workforce, hundreds of thousands of job openings persist, with job seekers outnumbered.
Voluntary quit rates are trending downward, with only 29% of workers planning to seek new employment in early 2025, a decrease from the mid-2024 rate of 35%. Satisfaction with compensation, manageable workloads, and favorable workplace environments have contributed to this cooling pace of job switching.
In summary, the labor market has shown resilience, with steady hiring and a stable unemployment rate, despite some layoffs. The persistence of a labor shortage, marked by a higher number of job openings than unemployed individuals, poses a significant challenge for employers in 2025 in terms of recruiting and retaining talent.
