The number of Americans who applied for unemployment benefits last week fell by 10,000 to a three-week low of 230,000, offering further evidence that the labor market remains rock solid.

New jobless claims slipped from a revised 240,000 in the prior week, the government said.

Unemployment claims typically rise when the economy weakens and a recession approaches. Claims still show a low number of job losses in a surprisingly resilient U.S. economy.

Economists had forecast the new claims in the week ended Aug. 19 to total 240,000.

Big picture: Hiring has slowed since last year, but the U.S. is still adding jobs and layoffs remain low. The labor market is likely to stay strong and keep the economy afloat so long as consumers keep spending.

If spending wanes, businesses could resort to more layoffs to offset the drop in demand and put the economy in the danger zone.

Source: Marketwatch