Slightly fewer Americans filed for unemployment benefits last week, according to the Labor Department. The number of claims fell to 206,000 for the week ending September 5, down from a revised 207,000 the previous week. The four-week average of claims also declined modestly to 206,000. Economists surveyed by Reuters had expected about 205,000 new claims.
Economists track these figures because they often reflect changes in the job market ahead of time, according to the Boston Herald. Over the past year, jobless claims have mostly stayed within a narrow range of 200,000 to 230,000 per week, according to a report from dailycamera.com. The job market has held up even though higher gas prices have put pressure on both businesses and consumers. Claims have stayed between 189,000 and 212,000 since the middle of July, according to Reuters.
The situation began after fighting with Iran started on February 28. Layoffs remain uncommon in the current environment. Companies are cautious about cutting staff, partly because of labor shortages seen after the pandemic ended.
The number of people continuing to receive unemployment benefits also edged lower. Continuing claims fell by 1,000 to 1.774 million for the week ending August 29. The insured unemployment rate remained at 1.2%.
Businesses are still hiring, but at a slower rate than in past years. So far this year, employers have added an average of 80,000 jobs each month. August saw a notable increase with 162,000 jobs added. The August increase was the strongest monthly gain in five months and followed a gain of 21,000 jobs in July. The unemployment rate remained at 4.1%.
Food services and drinking places added 59,000 jobs in August. Local government education added another 42,000 jobs, according to the Bureau of Labor Statistics.
This performance is a marked improvement compared to 2025, when job creation averaged less than 10,000 per month. That year was affected by high interest rates and trade policy uncertainty under President Donald Trump. However, current hiring levels still fall short of the average of 166,000 jobs added each month in 2023 and 2024.
The job market has not yet returned to the levels seen during the post-pandemic hiring boom. During that period, companies added an average of 491,000 jobs per month.
There are also signs that some unemployed workers are taking longer to find another job. The median duration of unemployment rose to 11.4 weeks in August from 10.5 weeks in July. About 1.93 million people had been unemployed for 27 weeks or longer.
Overall, the latest claims report suggests companies are still avoiding widespread layoffs even as hiring remains slower than during the strongest years following the pandemic. The combination of low layoffs and August’s stronger hiring numbers points to a labor market that remains relatively stable despite pressure from higher fuel prices and other economic uncertainty
IMAGE: Morris “Moe” Davis U.S. Department of Labor Administrative Law Judge. Photo: Skunkhaus / Wikimedia, taken 2020-01-28, CC BY-SA 4.0