WASHINGTON (AP) — U.S. applications for unemployment benefits rose last week, but layoffs remain at historically healthy levels.The Labor Department reported Thursday that 209,000 people filed jobless claims last week, up from a revised 200,000 the week before and higher than the 205,000 forecasters had expected. The four-week average of applications, which smooths out week-to-week-volatitlity, was unchanged at 199,000.The overall number of people collecting employment benefits the week that ended Aug. 1 dropped by 22,000 to 1.78 million.Claims for jobless benefits are a proxy for layoffs, and they’ve been at a historically low range of around 200,000 to 230,000 a week for the past year, suggesting that Americans who have jobs enjoy unusual job security. The U.S. unemployment rate is low at 4.1%, as the economy has proven resilient despite a spike in energy prices caused by the fighting with Iran.
“The labor market has yet to show any sign of wear and tear from the surge in oil prices since the start of the war with Iran and the global energy supply shock,’' Carl Weinberg, chief economist at High Frequency Economics, wrote in a commentary.The story is less encouraging for those trying to break into the job market and for those who lost their jobs and are looking for new work. Companies, scarred by worker shortages that followed the end of COVID-19 lockups four to five years ago, are reluctant to let go of staff; but they aren’t eager to take on new workers. Economists regularly refer to a “no hire, no fire’’ job market.
