US Jobless Claims Edge Up, But Labor Market Holds Steady
Initial US jobless claims rose 9,000 to 209,000 last week, signaling a stable labor market despite July's payroll dip.
The number of Americans filing new claims for unemployment benefits increased last week, though the rise was modest enough to suggest the labor market remains on solid footing.
Initial claims for state unemployment benefits climbed by 9,000 to a seasonally adjusted 209,000 for the week ending August 8, according to data released Thursday by the Labor Department. Economists had anticipated a lower figure of 202,000.
The uptick follows a government report last week showing nonfarm payrolls fell by 23,000 in July, with downward revisions to May and June. Analysts attribute part of the summer slowdown to seasonal adjustment challenges tied to the school year's end, a recurring pattern that can distort the data.
Despite the recent payroll dip, claims remain near the lower end of their 2025 range of 189,000 to 230,000. Additional evidence of stability came from a National Federation of Independent Business survey, which showed small-business employment rebounding in July after four consecutive monthly declines.
Continuing claims, which track people receiving benefits after an initial week of aid, fell by 22,000 to 1.777 million for the week ending August 1, offering another sign of steady hiring.
The combination of a resilient labor market and mild inflation could allow the Federal Reserve to hold interest rates unchanged at its September meeting. The central bank left its benchmark rate in a 3.50%-3.75% range last month, though three policymakers dissented in favor of a quarter-point hike.