US jobless claims edge lower, continuing claims remain elevated

[WASHINGTON] Applications for US unemployment benefits edged lower last week, suggesting employers remain reluctant to lay off workers. 

Initial claims decreased by 3,000 to 224,000 in the week ended Aug 9, which was about in line with economists’ forecasts.

Businesses have pared back on hiring new employees amid economic uncertainty driven by President Donald Trump’s policies, particularly tariffs. However, the relatively low level of initial filings indicates that employers aren’t widely cutting workers. 

Continuing claims, a proxy for the number of people receiving benefits, fell to 1.95 million in the previous week, according to Labor Department data released on Thursday (Aug 14). That figure has been hovering around the highest since 2021 for the last few months, indicating many out-of-work Americans are finding it difficult to find employment. 

Investors expect the Federal Reserve to reduce interest rates at their September policy meeting. Recent data point to a cooling labour market, while the impact from tariffs on prices has been limited. 

Separate data has shown a significant slowdown in job creation over the past three months after sizeable downward revisions to May and June figures. Following that report, Trump fired the head of the Bureau of Labor Statistics.

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He has since announced EJ Antoni as his pick to lead the agency – an appointment that is subject to Senate confirmation. Economists on both sides of the political aisle have raised concerns about Antoni’s political views and work history. 

The four-week moving average of new applications, a metric that helps smooth out volatility, was little changed at 221,750. Before adjusting for seasonal factors, initial claims rose last week, led by Massachusetts and California. BLOOMBERG