US Initial Unemployment Claims Drop, Indicating Potential Strength in Job Market

According to Odaily, the number of initial unemployment claims in the United States fell to 222,000 for the week ending May 11. This figure is slightly lower than the previous week's 231,000 claims, indicating a potential strong momentum in the job market. The previous week's data had risen to the highest level in over eight months, but this week's slight decline reversed some of the previous week's increase. The increase in the number of initial unemployment claims this week is largely attributed to a surge in New York unemployment claims related to school spring breaks. Despite the healthy state of the US labor market, it is steadily rebalancing after the Federal Reserve raised interest rates by 525 basis points since March 2022. The easing of labor market conditions and the downward trend in inflation have increased the possibility of a rate cut in September.