U.S. jobless claims applications fall as labor market continues to show resiliency

abcnews.go.com:

The U.S. labor market continues to flex its muscle, as applications for jobless claims fell again last week and remain at healthy levels despite high interest rates and elevated inflation

The U.S. labor market continues to flex its muscle as applications for jobless claims fell again last week and remain at healthy levels in the face of high interest rates and inflation.

Applications for unemployment benefits dropped by 11,000 to 239,000 for the week ending August 12, down from 250,000 the previous week, the Labor Department reported Thursday.

The four-week moving average of claims, which softens some of the week-to-week volatility, rose by 2,750 to 234,250.

Jobless claim applications are seen as a proxy for the number of layoffs in a given week.

Troubling levels of inflation moved the Federal Reserve to raise interest rates at a breakneck pace for the past year-and-a-half: the central bank raised its benchmark rate 11 times to the current 5.4%, a 22-year high.

Part of the Fed’s reasoning was to cool the job market and bring down wages, which, in theory, suppresses price growth. Though inflation has come down significantly during that stretch, the job market has remained remarkably strong.

Early this month, the Labor Department reported that U.S. employers added 187,000 jobs in July, fewer than expected, but still a solid number. The unemployment rate dipped to 3.5%, close to a half-century low.

Job openings in June fell below 9.6 million, the fewest in more than two years. However, the numbers remain unusually robust considering monthly job openings never topped 8 million before 2021.

Applications for jobless aid reached a higher level above 260,000 for a few weeks this spring, causing some concern, but then retreated.