US initial jobless claims hover near a roughly 57-year low, with strong domestic demand driving profits higher.

BlockBeats news, October 22 — The number of new applications for unemployment benefits in the U.S. fell last week to the lowest level in nearly 57 years, with layoffs decreasing and the labor market stabilizing. Data released today by the U.S. Department of Labor showed that initial claims for state unemployment benefits fell by 6,000 to a seasonally adjusted 194,000 for the week ended October 17. This figure is approaching the level of 189,000 reached in mid-July, the lowest since 1969.

Economists believe that strong domestic demand in the U.S. has driven profits higher, shielding workers from layoffs. However, as the U.S.-Israel war against Iran intensifies, tighter financial conditions and rising interest rates could weigh on labor market performance next year.