Even as the markets tumble, inflation gains and a recession looms, the number of Americans filing for unemployment benefits fell by nearly 3,000 last week. Economists had forecasted that the number would sit near 220,000. The four-week moving average, meanwhile, was 218,500, an increase of 2,750 from the prior level.

Labor markets seem to be the only markets retaining strength. However, the supply and remaining balance for workers is beginning to ease and set pressures from inflation.

The news comes after the Fed raised interest rates by 75bps earlier this week in its most aggressive move to combat inflation. Jerome Powell cited the labor market as the reasoning behind why the economy can handle higher interest rates.

Job growth has tallied out 400,000+ jobs a month so far this year which is above average. The unemployment rate is 3.6%, just shy of the pre-pandemic lows.