US Unemployment Claims Hit Four-Month Low Despite Major Layoffs, Potential Impact on Federal Reserve Rate Decisions

COINOTAG news, on September 26, revealed that the number of initial unemployment claims in the United States dropped to 218,000—a four-month low. Despite a rise in the U.S. unemployment rate and sluggish job creation, initial unemployment claims have remained consistently low in recent months. According to economists, this trend persists because workers who qualify for such benefits are not actually losing their jobs. Although weekly layoff applications remain minimal, several major corporations have initiated or announced layoff plans this month. Paramount Global executed another round of layoffs on Tuesday, while General Motors disclosed last week that it would temporarily lay off two-thirds of its workforce at a Kansas assembly plant until mid-2025. Should layoffs increase in the forthcoming months and more Americans face unemployment, Federal Reserve officials may contemplate expediting interest rate cuts, faster than currently predicted.