US jobless claims rise but at historically low levels

More people in the United States filed for unemployment benefits last week but lay-offs are still rare and jobless claims remain at historically low levels.

The Labor Department reported on Thursday that filings for benefits ticked up to 206,000 last week from a revised 204,000 the week before.

The four-week average of claims, which smooths out week-to-week volatility, rose modestly to 207,250 last week.

Claims for jobless benefits are a proxy for lay-offs, and economists watch them because they can be a sign of where the job market is headed.

For the past year, claims have mostly stayed within a historically low range of 200,000 to 230,000 a week.

The number of people collecting unemployment benefits rose slightly to 1.78 million the week that ended August 22, up by 8000 from the week before.

Companies, remembering the worker shortages that followed the end of COVID-19 lockups, are still reluctant to let go of staff.

The Labor Department reported on Tuesday that gross hiring - before subtracting people who lost or left their jobs - fell 5 per cent to fewer than 5.1 million new jobs.

The result is what economists call a "no-hire, no-fire" labour market in which those who have work enjoy job security but times are tough for young workers trying to land an entry-level job or unemployed people seeking to get back to work.