Fewer Americans file jobless claims as U.S. labor market continues to defy elevated interest rates

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The number of Americans filing for unemployment benefits fell slightly last week as the U.S. labor market remains healthy in the face of high interest rates.

Jobless claims ticked down by 2,000 to 231,000 for the week of Aug. 24, the Labor Department reported Thursday. That's just below the 232,000 new filings analysts were expecting. The four-week average of claims, which evens out some of the week-to-week volatility, fell by 4,750 to 231,500. Weekly filings for unemployment benefits, which are considered a proxy for layoffs, remain low by historic standards. They have ticked up in recent months though.

Last week, the Labor Department reported that the U.S. economy added 818,000 fewer jobs from April 2023 through March this year than were originally reported. The revised total supports evidence that the job market has been steadily slowing and likely reinforces the Federal Reserve’s plan to start cutting interest rates soon. The Fed, in an attempt to stifle inflation that hit a four-decade high just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023.

 

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