The state of the labor market has not changed in months. The low-hire-low-fire environment this year has resulted in the lowest number of jobless claims in 57 years. Most workers are holding onto their jobs, but job seekers are having trouble finding work.
Initial jobless claims fell to 194,000 last week, the lowest since July of this year, the Labor Department reported. Economists were expecting 200,000 additional claims. Hiring has slowed as there were only 29,000 new jobs created in September, but the unemployment rate has held near historic lows at 4.2 percent.
This report indicated a solid labor market just ahead of the Fed’s regularly scheduled meeting this week, when they could decide to raise rates. The market is expecting a rate increase before the end of the year, be it at this week’s meeting or the following one in the first week of December.