US applications for jobless claims inch back down as companies hold on to their employees

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U.S. applications for unemployment benefits fell slightly last week as companies held on to employees in an economy that has largely withstood rapidly rising interest rates, intended to cool hiring and spending, for more than a year.

The number of Americans applying for jobless benefits last fell week by 4,000, to 228,000 the week ending August 26, the Labor Department reported Thursday.

Part of the Fed’s intent was to cool the job market and bring down wages, which many economists believe suppresses price growth. Though some measures of inflation have come down significantly — from as much as 9% down closer to 3% — since the Fed starting raising interest rates, the job market has held up better than many anticipated.

Economists believe U.S. employers added 170,000 jobs in August. The Labor Department will issue official monthly jobs numbers Friday. Besides some layoffs in the technology sector early this year, companies have mostly been trying to retain workers.

 

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