What’s going on:
Unemployment benefit claims dropped in the U.S. for the second consecutive week, demonstrating a solid job market in which employers are still reluctant to cut down on staff numbers.
The Labor Department reports indicated that applications fell by 1,000 to 191,000 for the week ended March 18, which is lower than the median expectation of 197,000, according to Bloomberg.
Why it matters:
Amidst a backdrop of Federal Reserve rate increases, the labor market has proven remarkably resilient, with unemployment claims staying near historic lows and job creation persisting at a strong rate. There are nearly two open roles for every out-of-work American, although certain sectors, such as food services and leisure/hospitality, are having difficulty in recruiting and maintaining staff.
How it’ll impact the future:
Though the full consequences of recent bank failures remain to be seen, it is almost certain that stringent loan policies and increased borrowing expenses will put a damper on the economy.