US unemployment claims drop to 231,000
Unemployment claims in the US fell to 231,000 for the week ended September 13 after a spike caused by identity fraud in Texas.
Even though layoffs are low, the job market isn't as strong as it looks—companies aren't hiring much, and there just aren't enough workers to go around.
Claims dropped by 33,000 from last week's revised total
The Labor Department says claims dropped by 33,000 from last week's revised total of 264,000—better than economists expected.
The earlier jump was mostly due to fake claims in Texas after Labor Day.
But hiring has pretty much stalled out thanks to worries over tariffs and stricter immigration rules making it harder for companies to find people.
Fed cuts interest rates to boost labor market
On September 17, the Federal Reserve cut its main interest rate to 4.00%-4.25%, to help the labor market.
Job growth is crawling along—August saw only 22,000 new jobs—and people are spending longer searching for work (an average of 24.5 weeks), even though actual layoffs remain low.