The number of Americans applying for unemployment benefits fell last week, the U.S. Labor Department said Thursday — a sign that companies aren’t cutting many jobs.
Jobless claims dropped by 10,000 to 236,000, a historically low level. The four-week average, which smooths out weekly volatility, dipped by 750 to 245,000.
Applications for unemployment aid are a proxy for layoffs, and the decline suggests businesses are largely holding on to their workers. However, separate data indicates that hiring also remains subdued, in what economists are calling a “no hire, no fire” job market.
The unemployment rate remains low, though there are signs the economy is slowing. So far this year, employers have added a solid but unspectacular 124,000 jobs a month, down from an average of 168,000 last year. Most hiring has been concentrated in a few industries: health care, restaurants and hotels and government.
Layoffs have largely remained low, but hiring has also been weak.
With many businesses hesitant to create new jobs, recent college graduates are facing the toughest job market in more than a decade. The unemployment rate for grads aged 22 to 27 is now higher than the overall jobless rate, and the gap between the two is the widest it has been in more than 30 years.