The Labor Department said Thursday that 197,000 applied for unemployment checks last week, the fewest since mid-July and down from a revised 198,000 the week before. The four-week average of claims, which smooths out week-to-week ups and downs, fell to 202,250 last week from 204,000.
Claims for jobless benefits are a proxy for layoffs, and economists watch them because they can be a sign of where the job market is headed. So far this year, claims have mostly stayed below 220,000 — historically low.
The American job market has remained sturdy, despite higher energy prices that have squeezed businesses and consumers since the fighting with Iran began Feb. 28.
Layoffs are low. Businesses, remembering the labor shortages that followed the end of pandemic lockdowns, are reluctant to let go of staff. They’re hiring — but modestly by the standards of recent years.
So far this year, employers — companies, government agencies and nonprofits — have been adding an average 80,000 jobs a month, including a surprising 162,000 in August.
