Weekly US jobless claims rise modestly By Reuters

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits rose marginally last week, pointing to a still low level of layoffs even as the labor market slows.

Initial claims for state jobless benefits rose by a seasonally adjusted 2,000 to a seasonally adjusted 230,000 for the week ended Sept. 7, the Labor Department said Thursday. Economists polled by Reuters had estimated 230,000 claims for the past week.

Last week’s dates included the Labor Day holiday.

Claims tend to be volatile around bank holidays. However, they were little changed since falling from an 11-month high of 250,000 in late July. The labor market slowdown is driven by businesses cutting back on hiring as higher interest rates reduce demand across the economy.

Government data last week showed nonfarm payrolls rose less than expected in August, but the jobless rate fell to 4.2 percent from 4.3 percent in July.

Amid a slowing labor market, the Federal Reserve is expected to begin its policy easing cycle next Wednesday, with a 25 basis point interest rate cut guaranteed after annual consumer price growth slowed sharply in August , although some inflation volatility remained.

The central bank kept its benchmark overnight interest rate in the current range of 5.25%-5.50% for a year, after raising it by 525 basis points in 2022 and 2023.

The number of people receiving benefits after an initial week of aid, a proxy for employment, rose by 5,000 to a seasonally adjusted 1.850 million in the week ended Aug. 31, the claims report showed.

So-called continuous claims have been trending lower through August after rising in July to levels last seen at the end of 2021. The drop is in line with a drop in the jobless rate last month.