U.S. applications for unemployment benefits inched up modestly this week after reaching their lowest level in eight months the previous week as the labor market continues to defy the Federal Reserve’s interest rate hikes, the Associated Press reports.
Filings for jobless claims rose by 2,000 to 204,000 for the week ending Sept. 23, the Labor Department reported today. Last week’s figure was the lowest since January. The four-week moving average of claims, which quiets some of the week-to-week noise, fell by 6,250 to 211,000.
Though the Federal Reserve opted to leave its benchmark borrowing rate alone last week, it is well into the second year of its battle to squelch four-decade high inflation. Part of the Fed’s goal in that fight has been to cool the labor market and bring down wages, but so far that hasn’t happened.
Earlier this month, the government reported that U.S. employers added a healthy 187,000 jobs in August. Though the unemployment rate ticked up to 3.8%, it’s still low by historical measures.
U.S. businesses have been adding an average of about 236,000 jobs per month this year, down from the pandemic surge of the previous two years, but still a strong number.
Besides some layoffs early this year — mostly in the technology sector — companies have been trying to retain workers.
Overall, 1.67 million people were collecting unemployment benefits the week that ended Sept. 16, about 12,000 more than the previous week.
