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U.S. weekly jobless claims fall to 203,000 as layoffs remain low

First-time applications for unemployment benefits dropped slightly last week, reflecting continued low layoff levels alongside subdued hiring.

The short version

  • Initial U.S. unemployment claims fell by 4,000 to a weekly total of 203,000, remaining near historic lows.
  • The broader labor market reflects low layoff rates paired with sluggish hiring, which economists refer to as a 'no hire, no fire' environment.
  • The August U.S. monthly jobs report is expected to be released next week, offering additional details on employment trends.

Key facts

  • The Labor Department reported that U.S. initial jobless claims decreased to 203,000 last week from a revised 207,000 the previous week.[Associated Press]
  • The four-week moving average for unemployment claims rose slightly to 205,500.[Associated Press]
  • The national unemployment rate stands at 4.1%.[Associated Press]
  • Employers have added an average of 61,000 jobs per month so far this year, up from an average of 9,700 jobs per month last year.[Associated Press]
  • Over 1.3 million individuals have exited the U.S. labor force over the past year.[Associated Press]

What remains uncertain

  • Forecasters surveyed by FactSet project that the upcoming August employment report will show 65,000 jobs added, though official government totals have not yet been released.[Associated Press]

Sources