According to Labour Department data released on Thursday (August 20), initial claims for state unemployment benefits decreased by 6,000 in the week ended August 15 from the previous week.
Claims have remained toward the lower end of their 189,000-230,000 range for this year, indicating that layoffs remain low even as hiring has been softer. The four-week moving average of initial claims, which smooths out weekly volatility, increased to 204,000 last week.
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Initial claims had fallen to 189,000 in the week ended July 18, the lowest level since 1969. Although claims have risen from that level, they remain historically subdued.
Continuing claims, which track the number of people receiving unemployment benefits after an initial week of aid and serve as a proxy for hiring conditions, increased by 18,000 to 1.799 million in the week ended August 8.
The US unemployment rate edged down to 4.1% last month, remaining at a historically low level. The latest labour market data, along with signs of mild inflation, could allow the Federal Reserve to keep interest rates unchanged in September if those conditions persist.
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