Odaily Planet Daily report: Last week, the number of first-time applications for unemployment benefits in the U.S. dropped significantly, indicating that the U.S. labor market remains stable, and Federal Reserve officials must continue focusing on curbing inflation. The U.S. Department of Labor reported on Thursday that initial jobless claims for the week ending July 18 decreased by 22,000 to 187,000, compared to the expected 212,000. Thursday’s report is the latest signal showing continued stability in the labor market.
In June, the unemployment rate unexpectedly fell to 4.2%, hitting a one-year low, but this decline was primarily due to a reduction in the labor force rather than job growth. The U.S. labor market is exhibiting an unusual balance: limited labor supply, slow job creation, and restrained layoffs, keeping the unemployment rate persistently at historic lows. This situation has prompted an increasing number of Federal Reserve policymakers to focus more on inflation, which remains well above the 2% target, rather than on the strength of the job market. (Jinshi)