US jobless claims rise to 206,000 as gross hiring falls 5%

US layoffs stayed near the low end of their recent range at the end of August, even as employers kept pulling back on hiring. Initial unemployment claims rose by 2,000 to a seasonally adjusted 206,000 in the week ended Aug. 29, according to Reuters' account of Labor Department figures; gross hiring fell 5% to fewer than 5.1 million, AP reported, citing Labor Department data released Tuesday.

Weekly claims, a proxy for layoffs, have mostly stayed between 200,000 and 230,000 over the past year, a historically low range, according to The Associated Press. The four-week average, which smooths weekly fluctuations, rose modestly to 207,250. The number of people receiving unemployment benefits after an initial week of aid increased by 8,000 to a seasonally adjusted 1.779 million in the week ended Aug. 22, according to Reuters.

Employers are holding on to workers more readily than they are taking on new ones. Gross hiring is measured before subtracting people who lost or left jobs. Employers shed a net 23,000 jobs in July. Monthly job growth has averaged 61,000 this year, above last year's 9,700 but well below the 166,000 average in 2023 and 2024.

Economists cited by Reuters continued to characterize the labor market as one with slow hiring and slow firing.

By sector, the Federal Reserve's Beige Book described employment as rising very slightly in August, with healthy labor demand most frequently seen in manufacturing, construction and some service sectors, Reuters reported. Retail and hospitality saw falling labor demand.