Fewer Americans filed for unemployment benefits last week as the labor market continues to stand out as one of the strongest segments of the US economy.
Jobless claims for the week ending Aug. 20 fell by 2,000 to 243,000, the Labor Department reported Thursday.
The four-week average of claims, which offsets some of the week-to-week volatility, rose by 1,500 to 247,000.
The number of Americans collecting traditional jobless benefits fell by 19,000 in the week ending Aug. 13, to 1.42 million.
First-time applications typically reflect layoffs and are often considered an early indicator of where the job market is headed.
US hiring in 2022 has been remarkably strong even as the country grapples with rising interest rates and weak economic growth.
US employers added 528,000 jobs in July, according to the Labor Department, more than double what forecasters expected. The unemployment rate fell to 3.5%, matching a 50-year low reached just before the coronavirus pandemic hit the US economy in early 2020.
Other challenges
But there are other challenges. Consumer prices have been rising, rising 8.5% in July from a year earlier, slightly below June’s 40-year high of 9.1%. To combat inflation, the Federal Reserve has raised its benchmark short-term interest rate four times this year.
On Friday, Fed Chairman Jerome Powell is due to deliver a speech that could shed more light on how high or how fast the central bank can raise interest rates in the coming months.
Higher borrowing costs have taken a toll. The economy contracted in the first half of the year, a move that suggests the start of a recession. But the strength of the labor market has been inconsistent with an economic downturn.
[Con información de The Associated Press]
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