Analysis: The number of initial jobless claims in the United States rose last week, reducing the likelihood of interest rate cuts by the Federal Reserve in the coming months

ChainCatcher news, according to Jinshi reports, the number of initial unemployment claims in the United States rose last week, but layoffs remain at historically low levels, indicating a generally healthy job market. The U.S. Department of Labor announced on Thursday that for the week ending January 11, initial unemployment claims increased by 14,000 to 217,000. Weekly unemployment claims are considered an indicator of layoffs.

Despite some signs of labor market weakness in 2024, job opportunities remain plentiful, and layoffs are at historical lows. Last week, the U.S. Department of Labor's non-farm report indicated a surge in job growth in December, with the unemployment rate declining. Last month, employers added 256,000 jobs, and the unemployment rate fell to 4.1%.

The final employment report for 2024 emphasizes that even with interest rates significantly higher than pre-pandemic levels, the economy and hiring can still grow at a robust pace. Therefore, after three rate cuts at the end of 2024, the likelihood of the Federal Reserve cutting rates again in the coming months is much lower.