New filings for jobless benefits inched down last week to 192,000, remaining below the pre-pandemic level where they have been since December, according to Labor Department data released on Thursday.
That low level continues to suggest a strong labor market where companies hold on to their workers, although some of that strength might be discounted because of seasonal fluctuations in the data.
The long-term trend—the 13-week moving average—showed similar strength, dipping to 208,000, also below the pre-pandemic level in 2019.
That strength implies more room for the Federal Reserve to stay restrictive with its monetary policies as it tries to tame inflation, and it fuels more hope for a soft landing if the impact of rate hikes on layoffs and the unemployment rate stays minimal.
There are, however, reasons to remain cautious. Anecdotal evidence of recent layoffs, especially in the tech sector, suggests that workers have one to three months to prepare before their jobs actually end.
