Jobless Claims Fall to 250,000 and Show No Sign of Rising Layoffs

The numbers: The number of people who applied for unemployment benefits dipped to 250,000 in mid-August and appear to have stabilized after a steady increase during the summer.

Initial jobless claims fell by 2,000 from a revised 252,000 in the prior week.

New claims in the first week of August were also revised down from a preliminary 262,000, which would been the highest level in nine months.

The number of people applying for jobless benefits is one of the best barometers of whether the economy is getting better or worse. New unemployment filings had fallen to as low as 166,000 in late March — the second-fewest on record — before turning higher in the spring and summer as the economy slowed.

Economists polled by the Wall Street Journal forecast new claims to total 260,000 in the seven days ended Aug. 13. The figures are seasonally adjusted.

Big picture:The economy is slowing in response to rising interest rates, but it’s still growing.

The Federal is jacking up the cost of borrowing to try to tame the biggest outbreak of U.S. inflation in almost 41 years. Higher rates typically discourage consumers and businesses from spending and investing.

Many companies are still trying to hire, however, and their biggest labor problem is finding enough workers to fill open jobs.

Market reaction: The Dow Jones Industrial Average and S&P 500 were set to open higher in Thursday trades.