The Labor Department reported Thursday that jobless claims dropped to 206,000 last week from a revised 212,000 the week before. The four-week average of claims, which smooths out week-to-week ups and downs, ticked up to 204,000 last week from 199,750.
Claims for jobless benefits are a proxy for layoffs, and economists watch them because they can be a harbinger for where the job market is headed. For the past year, claims have been at a historically low range of around 200,000 to 230,000 a week.
“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 number of people collecting unemployment benefits the week that ended Aug. 8 rose to 1.8 million from 1.78 million the week before.
The U.S. unemployment rate is low at 4.1%, partly because the economy has proved resilient in the face of higher energy prices. But it’s also because President Donald Trump’s immigration crackdown and the ongoing retirement of baby boomers mean that fewer people are competing for jobs: More than 1.3 million people have dropped out of the U.S. labor force over the past year.
