The U.S. Labor Department’s most recent report shows that unemployment claims fell in the week ending September 24 by 16,000 — the lowest level seen since April.
Although experts have pointed to a weakening economy, high inflation and layoffs as signs that the job market is drying up, the slight dip in unemployment finds a softer landing.
The Federal Reserve has consistently hiked up interest rates in an effort to stave off inflation and hamper down borrowing, but it has done little for companies still struggling to fill in job vacancies.
Because of this war for talent, employers are doing more to ensure they retain their current staff, including offering new benefits, higher salaries and other perks.
Officials state that the unemployment rate is expected to rise in the battle against inflation, but recent dips could indicate a need for another interest rate hike.