US unemployment claims decreased to 206 thousand applications

The US Department of Labor said on Thursday that new applications for unemployment benefits at the state level fell by 6,000 applications to 206,000 applications, after adjusting for seasonal factors, during the week ending August 15. Economists polled by Reuters had expected 210,000 applications.

Unemployment claims remain near the lower end of their range recorded this year, which ranges between 189,000 and 230,000 applications, indicating a continued decline in the pace of layoffs, even as the pace of hiring slows.

In another indication of the strength of the labor market, the unemployment rate in the United States fell again last month to 4.1%, remaining at a relatively low level historically.

Continued labor market stability, coupled with signs of moderating inflation, may allow the Federal Reserve to keep interest rates unchanged in September, if economic conditions remain unchanged.

The unemployment benefits report also showed an increase in the number of beneficiaries of benefits after the first week of receiving them, which is an indicator used to monitor the ability of the unemployed to return to the labor market, by 18 thousand to 1.799 million people, after adjusting for seasonal factors, during the week ending August 8.