❓WHAT HAPPENED: Weekly jobless claims in the U.S. fell modestly, dropping by 3,000 to 224,000 for the week ending August 9.
👤WHO WAS INVOLVED: The U.S. Labor Department reported the data, which reflects trends in layoffs and unemployment benefits.
📍WHEN & WHERE: The report covers the week ending August 9, with data released on Thursday.
🎯IMPACT: The data indicates a stable labor market, with the total number of Americans collecting unemployment benefits falling to 1.96 million.
The number of Americans who are filing for unemployment benefits fell modestly last week, continuing to reflect a stable labor market. The U.S. Labor Department reported Thursday that benefit applications for the week ending August 9 dropped by 3,000 to 224,000, coming in well below the forecasted 230,000 new applicants.
Importantly, weekly jobless claims are regarded as a key indicator of layoffs and the overall health of the labor market. Since the U.S. economy began recovering from the COVID-19 pandemic, claims have largely stayed within a historically healthy range of 200,000 to 250,000.
The report also noted that the four-week average of claims, which smooths out week-to-week volatility, rose slightly by 750 to 221,750. Despite this minor increase, the trend remains consistent with a robust labor market.
Additionally, the total number of Americans collecting unemployment benefits for the week ending August 2 fell by 15,000 to 1.96 million. The ongoing stability of the job market may increase pressure on Federal Reserve Chairman Jerome Powell to cut interest rates—a major point of contention between the central banker and President Donald J. Trump.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.