The number of Americans filing new claims for unemployment benefits decreased last week, defying expectations of a weak labor market amid the Federal Reserve’s aggressive interest rate hikes. Initial claims for state unemployment benefits dropped by 10,000 to 230,000 for the week ended August 19. This trend suggests that the economy could avoid a recession, thanks to the resilience of the labor market and receding inflation. Additionally, the number of people receiving benefits after an initial week of aid decreased, indicating that some laid-off workers are experiencing short spells of unemployment.