The number of Americans applying for unemployment benefits has decreased to its lowest level in nearly three months. The U.S. labor market is showing resilience despite elevated interest rates. Jobless claim applications dropped to 202,000 for the week ending Jan. 6, according to the Labor Department. This is a decrease of 1,000 from the previous week. The four-week average of claims, which smooths out weekly volatility, also dropped by 250 to 207,750. Weekly unemployment claims are considered an indicator of layoffs.

In spite of high interest rates and inflation, these claims have remained extraordinarily low. This indicates that the labor market remains strong, even in a challenging economic environment. The Federal Reserve raised its benchmark rate 11 times since March of 2022 to control inflation, but it did not slow down the growth in jobs.

In fact, the U.S. economy has avoided recession, with the unemployment rate staying below 4% for 22 consecutive months. This is the longest such streak since the 1960s. As of the week that ended Dec. 30, 1.83 million Americans were still receiving unemployment benefits, a decrease of 34,000 from the previous week.