US applications for jobless benefits fell to an eight-month low last week, as the labor market continued to show strength in the face of high interest rates.
US applications for jobless benefits fell by 20,000 to 201,000 for the week ended Sept. 16, according to a Labor Department report on Thursday. This is the lowest figure since the last week of January.
Jobless claims are considered to represent the number of jobs lost in a given week. The four-week average of claims, which is a less volatile measure, fell by 7,750 to 217,000.
Although the Federal Reserve chose to leave its key lending rate on hold this week, it is about to enter the second year of its efforts to combat the highest inflation in four decades. A total of 11 interest rate hikes since March last year have helped rein in price growth, but the US economy and labor market have performed better than most expected.
Earlier this month, the government reported that US employers added 187,000 jobs in August. Although the unemployment rate rose to 3.8%, it is still historically low.
US businesses have added about 236,000 jobs each month this year, down from the pandemic surge two years earlier, but still a strong figure.
Recent government data also showed that available jobs fell to 8.8 million in July, the lowest since March 2021 and down from 9.2 million in June. However, those numbers are still remarkably strong when compared to monthly employment that never exceeded 8 million before 2021.
Despite some layoffs earlier this year – mostly in the technology sector – companies are trying to keep their workers.
Many businesses are struggling to restore their workforces after downsizing during the pandemic, and much of the continued hiring likely reflects efforts by companies to keep up with high levels of consumer demand since the pandemic.
Overall, 1.66 million people were collecting unemployment benefits in the week ending Sept. 9, about 21,000 fewer than the previous week.
