The US job market remains healthy! Last week, initial jobless claims unexpectedly dropped to a new low in decades.

The number of initial jobless claims in the United States unexpectedly dropped to the lowest level in decades last week, indicating that the layoffs announced by companies have not yet substantially translated into actual job cuts. Data released by the US Department of Labor on Thursday showed that the number of initial jobless claims for the week ended April 25 decreased by 26,000 to 189,000, the lowest level since 1969, below market expectations of 212,000 and a revised prior value of 215,000. In addition, the number of continuing jobless claims for the week ended April 18 was 1.785 million, the lowest level in two years, lower than market expectations of 1.815 million and a revised prior value of 1.808 million. The four-week moving average of initial jobless claims for the week ending April 25 was 207,500, with a revised prior value of 211,000. Despite well-known companies such as Meta Platforms (META.US) and NIKE, Inc. Class B (NKE.US) announcing job cuts, the number of initial jobless claims remains at a low level, indicating that the labor market is still in a "low hiring, low firing" environment. The Federal Reserve decided to keep interest rates unchanged on Wednesday. Current Chairman Jerome Powell mentioned that the labor market "is showing more and more signs of stability," which is why the Fed is not in a rush to further lower interest rates. Economist Eliza Wang said, "The drop in the number of initial jobless claims for the week ending April 25 strongly indicates that layoffs are still limited. This also helps explain why despite heightened uncertainty since the outbreak of the Middle East conflict, the sentiment in the labor market remains stable." However, economists warn that the economy still faces downside risks due to the disruption in shipping through the Strait of Hormuz, which has pushed up prices of commodities such as fertilizers, petrochemical products, and aluminum. In addition, a survey by the World Business Federation on Tuesday showed that the percentage of consumers in April who found employment "difficult to obtain" decreased, while the percentage who considered employment "sufficient" remained stable. Economists say that these findings are consistent with the stable unemployment rate in April.