(NEWSnet/AP) — Applications for unemployment claims fell again last week and remain at an encouraging level in the face of high interest rates and inflation.

Applications for unemployment benefits dropped by 11,000 to 239,000 for the week ending Aug. 12, down from 250,000 the previous week, U.S. Labor Department said Thursday.

Jobless claim applications are seen as a proxy for the number of layoffs in a given week. The four-week moving average of claims rose by 2,750, to 234,250.

In early August, the Labor Department said U.S. employers added 187,000 jobs in July. The unemployment rate dipped to 3.5%, close to a half-century low.

Job openings in June fell below 9.6 million, the fewest in more than two years.

Applications for unemployment aid reached a higher level above 260,000 for a few weeks in spring 2023, causing some concern, but then retreated.

Outside of a flurry of layoffs in the technology sector early this year, companies have been retaining workers, for the most part.

Overall, 1.72 million people were collecting unemployment benefits the week ending Aug, 5, about 32,000 more than the previous week.

Copyright 2023 NEWSnet and The Associated Press. All rights reserved.