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June 30, 2023 / 08:33 AM IST

Sensex Live Updates | US weekly jobless claims post biggest drop in 20 months as economy shows stamina

The number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, the latest sign of the economy’s resilience that could push the Federal Reserve to resume raising interest rates in July.

The unexpected decline in applications reported by the Labor Department on Thursday reversed a recent jump, which had left initial jobless claims over the prior three weeks hovering at levels last seen in October 2021. The elevated readings had led some economists to conclude that layoffs were picking up as the economy begins to feel the heat from the Fed’s hefty rate hikes.

Initial claims for state unemployment benefits decreased 26,000 to a seasonally adjusted 239,000 for the week ended June 24. The drop was the largest since October 2021.

Unadjusted claims dropped 17,843 to 233,048 last week. Claims tumbled 10,108 in California and plunged 9,187 in Texas. They dropped 3,263 in Pennsylvania, while Minnesota reported a 2,387 decline. These decreases offset a 6,013 surge in Connecticut and a 5,206 jump in New Jersey.