US Weekly Jobless Claims Dip Slightly as Layoffs Remain Low

The number of Americans filing new claims for unemployment benefits declined slightly last week, indicating that layoffs remained limited and continued to support the U.S. labor market.

Initial claims for state unemployment benefits decreased by 1,000 to a seasonally adjusted 206,000 for the week ending September 5, according to the Labor Department. Economists surveyed by Reuters had expected 205,000 claims.

Weekly claims have stayed within a relatively narrow range of 189,000 to 212,000 since mid-July, pointing to a labor market that has been stabilizing after weaker conditions from late spring through much of the summer.

U.S. nonfarm payrolls increased by 162,000 in August, marking the strongest monthly gain in five months, following a 21,000 increase in July. The unemployment rate remained unchanged at 4.1%.

However, long-term unemployment continues to be a concern, with the median period of unemployment in August remaining close to its highest level in about four and a half years.

The number of people continuing to receive unemployment benefits after their initial week of assistance, a measure that can indicate hiring conditions, fell by 1,000 to a seasonally adjusted 1.774 million for the week ending August 29.