Overview

• Initial claims for state unemployment benefits fell by 3,000 to a seasonally adjusted 224,000 for the week ended Aug. 9, the Labor Department reported.
• Continuing claims slipped by 15,000 to 1.953 million in the week ending Aug. 2, remaining near their highest levels since 2021 and reflecting hiring difficulties.
• Employment gains have averaged about 35,000 jobs per month over the past three months, a marked slowdown from earlier this year.
• Businesses point to President Donald Trump’s elevated tariffs and weakening domestic demand as key factors in their caution over new hiring.
• Markets are betting on a Federal Reserve rate cut at the September meeting, though policymakers may hesitate amid sticky services inflation and tariff-related price pressures.