US applications for jobless benefits fell last week as layoffs remain low

washington: fewer americans sought unemployment benefits last week as employers appear to be retaining workers despite a slowing economy.applications for jobless benefits for the week ending aug 23 dropped 5,000 to 229,000, the labor department reported thursday. weekly claims are a proxy for layoffs and have mostly stayed in a historically healthy range of 200,000 to 250,000 since the us began emerging from the covid-19 pandemic.while layoffs remain low, hiring has weakened, creating what economists describe as a “no hire, no fire” economy. the unemployment rate remains at a low 4.2%. job gains have averaged just 35,000 a month in the three months ending july, barely one-quarter of the pace a year ago.growth slowed to a 1.3% annual rate in the first half of the year, down from 2.5% in 2024, amid uncertainty from president donald trump's tariff policies. the sluggish job market partly influenced federal reserve chair jerome powell to signal a possible interest rate cut at the next meeting on sept 16-17, which could lower borrowing costs for mortgages, auto loans, and businesses.the labor department also reported that the four-week average of claims rose by 2,500 to 228,500. the total number of americans collecting unemployment benefits for the week of aug 16 fell 7,000 to 1.95 million, down from a near four-year high earlier this month, indicating that many out-of-work americans are struggling to find new jobs.