The number of Americans filing new claims for unemployment benefits fell last week, pointing to a still tight labor market. Initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 239,000 for the week ended Aug. 12, the Labor Department said on Thursday. Labor market resilience is underpinning the economy, by driving retail sales and homebuilding. Economists have dialed back their forecasts for a recession this year, and are increasingly warming up to the idea that the Fed could guide the economy to a “soft landing.” The Associated Press has the story:
U.S. jobless claims applications fall again to 239K last week
Newslooks- (AP)
The U.S. labor market continues to flex its muscle as applications for jobless claims fell again last week and remain at healthy levels in the face of high interest rates and inflation.
Applications for unemployment benefits dropped by 11,000 to 239,000 for the week ending August 12, down from 250,000 the previous week, the Labor Department reported Thursday.
The four-week moving average of claims, which softens some of the week-to-week volatility, rose by 2,750 to 234,250.
Jobless claim applications are seen as a proxy for the number of layoffs in a given week.
Overall, 1.72 million people were collecting unemployment benefits the week that ended August 5, about 32,000 more than the previous week.
