Applications for US unemployment benefits plunged to the lowest level in decades, a sign that job-cut announcements have not yet meaningfully translated into layoffs.
Initial claims fell by 26,000 to 189,000 in the week ended April 25. according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 212,000 applications.
Continuing claims, a proxy for the number of people receiving benefits, dropped to 1.79 million in the previous week, the lowest in two years.
Filings have remained subdued despite high-profile companies such as Meta Platforms Inc. and Nike Inc. announcing job cuts, signaling the labor market continues to be in a low-firing environment. The Federal Reserve left interest rates unchanged Wednesday, and Fed Chair Jerome Powell cited a labor market showing “more and more signs of stability” as a reason why the central bank didn’t have to rush toward further rate cuts.
