The number of Americans filing for unemployment benefits inched up last week and remain historically low, however the total number of people collecting jobless benefits continues to grow. The Labor Department reported Wednesday that jobless claims for the week ending June 29 rose by 4,000 to 238,000 from 234,000 the previous week. The data was issued one day earlier than its regular Thursday release due to the July Fourth holiday.
Quick Read
- US jobless claims inch up, continuing claims rise for ninth straight week
- The Labor Department reported jobless claims rose by 4,000 to 238,000 for the week ending June 29.
- Continuing claims have increased for the ninth consecutive week, reaching 1.86 million, the highest since November 2021.
- Analysts suggest the rise in continuing claims indicates challenges in finding new employment for those already unemployed.
- Despite recent increases, weekly unemployment claims remain low by historical standards, signaling strong job security for most Americans.
- The four-week average of claims rose by 2,250 to 238,500, indicating a trend of increasing claims.
- The Federal Reserve has raised its benchmark borrowing rate 11 times since March 2022 to combat high inflation, aiming to cool the labor market and slow wage growth.
- Although many economists expected these rate hikes to trigger a recession, strong consumer demand and a resilient labor market have prevented it so far.
- Government data suggest emerging weaknesses, with jobless claims trending higher in June and the unemployment rate rising to 4% in May.
- Job postings in May slightly increased to 8.1 million, but April’s figure was revised down to 7.9 million, the first reading below 8 million since February 2021.
- The June jobs report is expected on Friday.
The Associated Press has the story:
US filings for jobless claims inch up modestly, but continuing claims rise for 9th straight week
Newslooks- WASHINGTON (AP) —
The number of Americans filing for unemployment benefits inched up last week and remain historically low, however the total number of people collecting jobless benefits continues to grow. The Labor Department reported Wednesday that jobless claims for the week ending June 29 rose by 4,000 to 238,000 from 234,000 the previous week. The data was issued one day earlier than its regular Thursday release due to the July Fourth holiday.
The total number of Americans collecting unemployment benefits rose for the ninth straight week, to 1.86 million, for the week of June 22. That’s the most since November of 2021.
Analysts say that continuing claims rise because many of those who are already unemployed may now be having a harder time finding new work.
Weekly unemployment claims — widely considered as representative of layoffs — remain at low levels by historical standards, a sign that most Americans enjoy unusual job security. Still, after mostly staying below 220,000 this year, weekly claims have steadily moved up recently.
The four-week average of claims, which softens some of the week-to-week volatility, rose by 2,250 to 238,500.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in an attempt to extinguish the four-decade high inflation that shook the economy after it rebounded from the COVID-19 recession of 2020. The Fed’s intention was to cool off a red-hot labor market and slow wage growth, which can fuel inflation.
Many economists had expected the rapid rate hikes would trigger a recession, but so far that hasn’t happened, thanks in large part to strong consumer demand and sturdier-than-expected labor market.
But recent government data suggest that some cracks are beginning to show.
Applications for jobless benefits are trending higher in June after mostly staying below 220,000 this year. The unemployment rate ticked up to 4% in May, despite the fact that America’s employers added a strong 272,000 jobs last month. Job postings in May rose slightly to 8.1 million, however, April’s figure was revised lower to 7.9 million, the first reading below 8 million since February 2021.
The government issues its June jobs report on Friday.
