The number of Americans filing new jobless claims fell last week, with as yet no sign that the recent financial market turmoil following the failure of two regional banks is taking a toll on the economy.
Initial jobless claims fell by 1,000 in the week ending March 18 to 192,000 in seasonally adjusted data, the Labor Department said Thursday.
Economists polled by Reuters had forecast 197,000 inquiries for the past week.
Orders have been in a tight range this year, remaining very low by historical standards despite a wave of layoffs from major tech firms.
With 1.9 jobs for every unemployed in January, employers are reluctant to lay off workers.
Economists expect labor market conditions to ease, especially after the collapse of Silicon Valley Bank and Signature Bank.
Financial conditions have tightened, which could lead to banks becoming tougher on lending, potentially impacting households and small businesses, which have been the main drivers of job growth.
This was recognized by the Federal Reserve, which raised its benchmark interest rate by 25 percentage points on Wednesday but indicated it was on the verge of halting increases in borrowing costs.
The US central bank has raised its key interest rate by 475 basis points since last March, from almost zero to the current range of between 4.75% and 5.00%.
Fed Chairman Jerome Powell told reporters that “the events of the past two weeks could lead to tighter credit conditions for households and businesses and thus weigh on labor demand and inflation.”
Source: Terra

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