The data was collected the second week of February, when Elon Musk’s Department of Government Efficiency was beginning to cut agency workforces and federal contracts and grants were frozen or cut.
The unemployment rate ticked down to an even 4%, signaling a still very healthy labor market.
For eligible Hoosiers on unemployment, Gov. Mike Braun said he wants the state’s unemployment program to provide more job assistance support and become a “springboard” for opportunity.
Some analysts say they expect layoffs ordered by the Department of Government Efficiency to show up in the report in the coming weeks.
Most Americans still enjoy unusual job security. But for those looking for work, the job hunt has been getting harder compared with the red-hot hiring days of 2021-2023.
Indiana workers who become unemployed through no fault of their own can claim unemployment insurance for up to 26 weeks under state law. Senate Bill 123 would slash that to 14 weeks.
The U.S. economy in December added the most jobs since March, capping a surprisingly strong year and supporting the case for a pause in Federal Reserve interest-rate cuts.
Economists called the drops “encouraging,” but cautioned that seasonal adjustments around the holidays can throw off the numbers.
The labor market has hinted at some softening recently but remains broadly healthy and has held up better than many economists predicted considering that interest rates have been elevated for years.
Analysts say the increase is more likely a result of Hurricane Helene—and the Boeing machinist strike—than a broader softening in the labor market.
Given Friday’s stronger-than-expected hiring report, economists say the Fed will almost certainly cut its benchmark rate in November by a modest quarter-point, after its larger-than-usual half-point reduction in September.
Weekly filings for unemployment benefits, considered largely representative of layoffs, had risen moderately since May before this week’s decline.
Friday’s report from the Labor Department showed that employers added 35% fewer jobs than forecasters had expected and the unemployment rate hit its highest level since October 2021.
The four-week average for continuing claims rose to 1,857,000, the most since December 2021.
The unemployment rate ticked up from 4% to 4.1%, a still-low number but the highest rate since November 2021.
Though this week’s number seems relatively high, it’s still within a range that reflects a healthy labor market.
After a miniboom that powered the first quarter of 2024, the labor market cooled in April, reflecting job growth that looked more like the latter half of 2023. April’s job gains were the smallest reported since October.
The job market has remained surprisingly resilient, with the unemployment rate staying below 4% for 23 straight months, the longest such streak since the 1960s.
The four-week moving average, which offers a clearer picture of the trend, was little changed at 212,000 last week, the lowest since late October.
The acceleration in payrolls is at odds with recent reports that have depicted a softer hiring pace, an outcome favored by the Fed as it will help rein in demand and tame price pressures.
