Initial Jobless Claims rose by 2,000 in the latest week, just above the previous week’s eight-month low, with 204,000 people filing for unemployment benefits for the first time. The low level of first-time filings suggests that employers continue to hold on to workers.

Continuing Claims also rose by 12,000, with 1.67 million people still receiving benefits after filing their initial claim. This data has been trending lower since topping 1.861 million in early April, reflecting a mix of people finding new jobs and benefits expiring.

What’s the bottom line? The Fed has been looking for clear signs that the labor market is softening as they consider further rate hikes this fall. Upcoming labor sector data will also play a pivotal role in the Fed’s next rate decision, which will be announced on November 1.