Applications for unemployment benefits fell to their lowest level in eight months last week as businesses continue to retain workers despite elevated interest rates meant to cool the economy and labor market.

Jobless claim applications fell by 13,000 to 198,000 for the week ending Oct. 14, the Labor Department reported Thursday. That's the fewest since January.

Jobless claim applications are considered a proxy for layoffs.

The four-week moving average of claims, which flattens out some of the week-to-week volatility, ticked down by 1,000 to 205,750.

Overall, 1.73 million people were collecting unemployment benefits the week that ended Oct. 7, about 29,000 more than the previous week.