US jobless claims rose last week By Reuters

(Reuters) – The number of Americans filing new jobless claims rose in the past week, but the level still suggests a gradual cooling in the labor market remains intact.

Initial claims for state jobless benefits rose 4,000 to a seasonally adjusted 232,000 for the week ended Aug. 17, the Labor Department said Thursday. Economists polled by Reuters had estimated 230,000 claims for the past week.

The latest data should continue to ease fears that the labor market is deteriorating rapidly, first raised after a much sharper-than-expected slowdown in job growth in July, in which the jobless rate also rose to a post-pandemic maximum of 4.3%.

Federal Reserve officials said they are watching the labor market closely, aware that waiting too long to cut interest rates could cause serious damage.

However, layoffs remain historically low, with much of the labor market slowdown coming from firms cutting back on hiring following an immigration-induced increase in labor supply.

Interest rate hikes of 525 basis points by the Federal Reserve in 2022 and 2023 reduce demand.

The US central bank has kept its benchmark overnight interest rate in the current range of 5.25%-5.50% for more than a year, but is now expected to begin a rate-cutting cycle at its next meeting of politics from September 17-18.

The number of people receiving benefits after an initial week of aid, a proxy for employment, rose by 4,000 to a seasonally adjusted 1.863 million in the week ended Aug. 10, the claims report showed.