Unemployment claims tick up to 206,000 but remain at historically low levels
WASHINGTON (AP) — More Americans filed for unemployment benefits last week, but layoffs are still rare and jobless claims remain at historically low levels. The Labor Department reported Thursday filings for benefits ticked up to 206,000…
More Americans filed for unemployment benefits last week, with claims increasing to 206,000 from a revised 204,000 in the prior week, according to the Labor Department. However, layoffs remain rare, and jobless claims continue to stay at historically low levels, hovering between 200,000 and 230,000 per week for the past year. The four-week average of claims rose slightly to 207,250 last week.
Companies, still cautious following the end of COVID-19 lockdowns, are reluctant to let go of staff, contributing to the low unemployment rate of 4.1%. Despite this, employers are not keen on hiring new workers, leading to a "no-hire, no-fire" labor market. In July, companies, government agencies, and nonprofits combined to cut 23,000 jobs.
So far this year, employers have added an average of 61,000 jobs per month, a significant decline from the 9,700 jobs averaged last year. The weak hiring, attributed to high interest rates and Trump's trade policies, indicates a hiring environment far below the 166,000 monthly jobs created in 2023 and 2024, and far removed from the 491,000 monthly jobs during the hiring boom of 2021-2022.
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