US Labor Market Remains Tight While Housing Market Slump Persists

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, touching the lowest level in two months amid ongoing labor market tightness and defying efforts by the Federal Reserve to slow demand.

The second straight weekly decline in claims reported by the Labor Department on Thursday raised cautious optimism that the economy could avoid a dreaded recession this year. It followed recent data showing inflation subsiding in June. Labor market strength is also supporting wage growth, helping consumer spending to continue plodding along.

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