Weekly jobless claims hit four-month low

The number of new applications for unemployment benefits dropped last week to the lowest level in four months, according to the Labor Department’s latest weekly jobless claims report. That number, adjusted to account for seasonal employment trends, was at 219,000, down 12,000 from the previous week. Continuing claims were also down by 14,000 to 1.829 million.

Unadjusted claims numbers showed rising unemployment in California, Texas and New York, outpacing a drop in claims in Massachusetts.

How will recent interest rate cuts affect jobless claims? The Federal Reserve cut interest rates on Wednesday to the 4.75 percent-5.00 percent range, marking the first drop in borrowing costs since 2020. Rate cuts typically incentivize investment in the economy, which could make more jobs available. Federal Reserve Chair Jerome Powell said policymakers were committed to maintaining a low unemployment rate.

Dig deeper: Read a roundup explaining how former President Donald Trump and Vice President Kamala Harris have dueling economic plans, as well as other key differences.