The number of new applications for unemployment benefits in the United States fell last week, indicating that layoffs remained low despite the announcement of job cuts by several large companies. Initial claims for the week ended November 22 fell by 6,000 to 216,000, according to a report by the Labor Department.
The jobless claims figure is seen as a leading proxy for the rate of layoffs and provides a snapshot of labor market growth. The latest data shows that the overall job market remains strong, despite the news of layoffs at high-profile companies.
Analysts caution that job cuts announced by retail and technology giants such as Target and Amazon usually take time to fully materialize. Therefore, their impact may not be fully reflected in the current claims figures and could appear in the data in the coming weeks or months.
The four-week average of initial claims, which helps smooth out weekly fluctuations, also showed a stable trend as it fell 1,000 to 223,750. This reinforces the view that there has been no sudden surge in layoffs so far.
However, the total number of Americans receiving unemployment benefits for the week ending November 15 rose by 7,000 to 1.96 million, indicating that there is still a pool of workers reliant on aid. Overall, the data suggests the labor market remains resilient even as large companies begin to adjust their workforces.
