The number of Americans filing new jobless claims fell modestly last week, suggesting some loss of momentum in the job market amid rising interest rates.
Initial claims for state jobless benefits fell 2,000 to a seasonally adjusted 250,000 in the week ended Aug. 13, the Labor Department reported Thursday.
Data from the previous week was reviewed and showed there were 10,000 fewer applications than previously reported. Economists polled by Reuters had forecast 265,000 claims for last week.
Although claims have risen in recent weeks, they remain below the 270,000-300,000 range that economists say would indicate a major labor market slowdown.
Firms in the interest rate-sensitive housing and technology sectors have been laying off workers in response to a slowdown in demand triggered by the Federal Reserve’s aggressive monetary tightening campaign to control inflation. .
The US central bank has raised its interest rate by 225 basis points since March.
Minutes from the July 26-27 monetary policy meeting, released Wednesday, showed that while Fed officials “observed that the labor market remained strong,” many also noted that “there were some tentative signs.” from a perspective of weakening of the labor market”.
Difficulties in adjusting data for seasonal fluctuations are also likely to push up applications.
Motor vehicle manufacturers typically close their assembly plants in July for annual renovations, leading to temporary layoffs. However, the shortage of chips has altered this pattern, which could undermine the model used by the Government to eliminate seasonal fluctuations in data.
However, the demand for labor remains strong. At the end of June there were 10.7 million job offers, with 1.8 offers for every unemployed worker.
Last week’s claims data covered the period during which the government surveyed businesses for the August employment report. Requests fell between the July and August survey periods. The economy created 528,000 jobs in July.
Next week’s data on the number of people receiving benefits after a first week of aid will shed more light on the outlook for job growth in August.
So-called continuing claims, a gauge of hiring, rose by 7,000 to 1.437 million in the week ending Aug. 6.
