The number of Americans who applied for unemployment insurance rose slightly last week, but remains at a good level.
Weekly claims rose 4,000 to 232,000 for the week of Aug. 17, the federal government reported Thursday. Department of LaborThe four-week average, which smooths out weekly ups and downs, fell 750 to 236,000.
For the week ending August 10, 1.86 million Americans were collecting unemployment benefits, up 4,000 from the previous week.
Weekly applications for unemployment benefits, a proxy for layoffs, remain low by historical standards.
From January through May, claims averaged a low of 213,000 a week. But they began to rise in May, reaching 250,000 by the end of July and adding to evidence that high interest rates are hurting the U.S. labor market.
However, the slight increase in claims this week follows two straight weeks of declines, allaying concerns that the labor market is deteriorating rapidly rather than simply slowing.
The Federal Reserve, which fight inflation which hit a four-decade high just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023, taking it to a 23-year high.
Inflation has been steadily declining — from 9.1% in June 2022 to a three-year low of 2.9% last month. Despite higher borrowing costs, the economy and hiring continued to improve, defying widespread fears that the U.S. was headed for a recession.
The economy weighs heavily on voters as they prepare for the November presidential election. Despite a strong job market and slowing inflation, Americans are still exasperated that consumer prices are 19% higher than before inflation began to take off in 2021.
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