The number of Americans filing for unemployment benefits declined by 4,000 to 203,000 in the third week of August, undershooting market expectations for an increase to 208,000. Claims have remained low since mid-July, when they fell to 189,000, a near 60-year trough.
Continuing claims, which measure the total number of people receiving unemployment benefits, also surprised to the downside, dropping by 18,000 to 1,778,000 in the preceding week. The figures reinforce the picture of a resilient labor market, even in the face of the recent unexpected decline in nonfarm payrolls reported by the BLS, and are consistent with comments from some FOMC officials that the economy is operating at or near full employment.
Initial claims filed by federal employees—closely watched in light of the administration’s efforts to reduce the size of the public workforce—fell by 59 to 390, their lowest level since December 2024.
