Labor market has cooled and hiring has slowed.
The numbers: The number of Americans who applied for unemployment benefits last week rose slightly to 230,000, but there was still no sign of widespread layoffs even as the job market cooled.
New claims increased by 2,000 in the seven days that ended Sept. 7, up from 228,000 in the prior week, the government said Thursday.
Economists polled by the Wall Street Journal had forecast new claims to total 225,000, based on seasonally adjusted figures.
The low level of layoffs shows the U.S. labor market is still in good health despite a big decline in job openings and new hires. Businesses still have enough demand to maintain current staffing levels, in a sign the economy continues to expand.
Key details: The number of new claims looked even better based on actual filings — that is, before seasonal adjustments.
Raw claims slid to 177,663 last week from 190,631 two weeks ago, marking the lowest level in almost a year. It’s quite uncommon for actual claims to be that low.
New jobless claims fell in 40 of the 53 states and territories that report these figures to the federal government.
The number of people already collecting unemployment benefits in the U.S., meanwhile, rose by 5,000 to 1.85 million, the government said.
These so-called continuing claims have increased gradually in the the past year because it’s taking longer for people who lose a job to find another one.
Big picture: A softening but still stable labor market gives the Federal Reserve the leeway to proceed slowly in lowering interest rates now that inflation has returned to close to low prepandemic levels.
If the labor market gets much weaker, however, the Fed could be spurred to reduce rates more rapidly. Most companies have been reluctant to reduce staff after the worst labor shortage in modern times left them scrambling to find workers.
Looking ahead: “Employers are holding fast on keeping employees, preferring to cut hours to reduce labor costs, if needed,” said Robert Frick, corporate economist at Navy Federal Credit Union.
