Key facts
- Initial jobless claims increased to 209,000 for the week ending August 8.
- Continuing unemployment claims decreased to 1.777 million.
- July experienced a net loss of 23,000 nonfarm payroll jobs.
- The Federal Reserve maintained its benchmark interest rate in the 3.50%-3.75% range at its last meeting.
The number of Americans filing for unemployment benefits rose moderately last week, indicating a stable labor market despite a surprise drop in jobs in July. Initial claims for state unemployment benefits increased by 9,000 to a seasonally adjusted 209,000 for the week ended August 8, according to the Labor Department. Economists had anticipated 202,000 claims.
Last month, the government reported a loss of 23,000 nonfarm payroll jobs, with downward revisions for May and June. Job growth typically slows in the summer due to seasonal adjustment challenges. Claims are currently hovering near the lower end of their 2023 range of 189,000 to 230,000.
Labor market stability, coupled with signs of mild inflation, could allow the Federal Reserve to hold interest rates steady in September. The central bank previously kept its benchmark overnight interest rate between 3.50% and 3.75%, though three policy-setting committee members favored a quarter-percentage-point hike.
The number of individuals receiving unemployment benefits after their initial week of aid, a proxy for hiring, decreased by 22,000 to 1.777 million for the week ended August 1.