The number of Americans filing new claims for unemployment benefits fell last week, indicating the continued tightness in the labor market even as job growth slows.
Labor market tightness is bolstering the economy, With recent data showing a solid increase in retail sales in July and a surge in single-family homebuilding.
“The labour markets are not imploding.” “As higher 5.5 percent interest rates aren’t lowering aggregate demand as anticipated.
The labor market is slowing at the margin, but job gains in July were the second-smallest since December 2020. Unemployment rate remains low, with 1.6 job openings for every unemployed person in June.
Economists have scaled back recession forecasts, with optimism that the Fed could guide the economy to a “soft landing.”