US Weekly Jobless Claims at Seven-Month Low Amid Low Layoffs

• The number of Americans filing new applications for unemployment benefits fell to a seven-month low last week, suggesting layoffs remained low, though the labour market is struggling to generate enough jobs for those out of work, amid the economic uncertainty.
• The absence of labour market deterioration in the weekly jobless claims report from the Labour Department on Wednesday argued against the Federal Reserve cutting interest rates again next month, with inflation still elevated, economists said.
• The U.S. central bank's Beige Book report on Wednesday said employment decreased slightly in mid-November but noted "more districts reported contacts limiting headcount using hiring freezes, replacement-only hiring and attrition than through layoffs." It described economic activity as "little changed" since October.
• "Fed officials would need to see a significant weakening in labour market conditions to lower rates in December," said Matthew Martin, a senior U.S. economist at Oxford Economics. "There are some signs of softening in various private sector metrics, but that's not the signal coming from the jobless claims data."
• Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ended Nov. 22, the lowest level since April. Economists polled by Reuters had forecast 225,000 claims for the latest week.
• Economists say President Donald Trump's aggressive trade and immigration policies had created an environment where businesses are reluctant to lay off or hire more workers, leading to what they and policymakers call a "no hire, no fire" labour market.
• However, some companies, including Amazon, are stepping up job cuts as they integrate artificial intelligence into some roles. Economists expect these job cuts could show up in the claims data next year, though filings have not always in the past increased in tandem with announced layoffs.

(Source: Reuters)