Washington, Aug 28 (AP) — The number of Americans applying for unemployment benefits saw a decline last week, indicating that employers are retaining their workforce despite a slowdown in the economy. Applications for unemployment benefits dropped by 5,000 to 229,000 for the week ending Aug 23, according to a report released by the Labor Department on Thursday. Economic analysts and the Federal Reserve are closely monitoring job market indicators, as recent government data reveals a notable decline in hiring activity since spring. From May to July, the country experienced an average monthly job gain of just 35,000, which is significantly less than the levels seen over the past year. Currently, weekly jobless claims have stabilized within a historically healthy range of 200,000 to 250,000, a trend observed since the United States began recovering from the COVID-19 pandemic over three years ago. Despite the low rate of layoffs, the hiring process has also become sluggish, leading economists to describe the present situation as a 'no hire, no fire' economy, while the unemployment rate remains at a low 4.2%. Economic activity has decelerated this year as numerous businesses have paused their expansion plans amid uncertainties associated with President Donald Trump's tariff strategies. Growth diminished to an annual rate of 1.3% in the first half of the year, compared to 2.5% in 2024. This persistent weakness in the job market is one reason Federal Reserve Chair Jerome Powell indicated last week the possibility of the central bank lowering its key interest rate at the upcoming meeting set for Sept 16-17. Such a reduction could lower borrowing costs across different sectors, impacting mortgages, auto loans, and business loans. The Labor Department also noted a slight increase in the four-week average of jobless claims, rising by 2,500 to reach 228,500. Furthermore, the total number of Americans receiving unemployment benefits for the week of Aug 16 fell by 7,000 to 1.95 million. This marks a decline from the near four-year high seen earlier this month, although the persistently high numbers indicate that many individuals are struggling to secure new employment once they lose their jobs. (AP) SCY SCY
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