US Labor Market Remains Stable Amid Ongoing Inflation Pressures

The US labor market remains stable, according to recent data from the Labor Department. Initial claims for state unemployment benefits rose by 2,000 to a seasonally adjusted 206,000 for the week ended August 29.

Economists polled by Reuters had forecast 205,000 claims for the latest week. The number of people receiving unemployment benefits after an initial week of aid increased 8,000 to a seasonally adjusted 1.779 million during the week ended August 22.

The Institute for Supply Management survey showed a measure of prices paid by services businesses for inputs jumped to a three-year high in August, suggesting that recent inflation was not confined to the goods sector.

Rising price pressures have led economists to expect an interest rate hike from the Federal Reserve by year-end. However, Fed Governor Christopher Waller said he is inclined to argue in favor of keeping rates steady this month if upcoming data confirmed inflation pressures were cooling off.