Weekly jobless claims rise to 260,000 |
New filings for unemployment benefits rose last week, holding close to the highest level of the year as the U.S. labor market showed several signs of cooling. Initial jobless claims increased slightly to a seasonally adjusted 260,000 last week from a downwardly revised 254,000 the prior week, the Labor Department said Thursday. The total is close to the 2022 peak set earlier in July of 261,000 and above the 2019 prepandemic weekly average of 218,000. Continuing claims, a proxy for the total number of people receiving payments from state unemployment programs, rose by 48,000 to 1.42m in the week ended July 23rd. “The labor market remains in good shape as the summer quarter progresses but the rise in initial claims since early April is a cold breeze blowing at the hot labor market this summer,” said Stuart Hoffman, senior economic advisor at PNC Financial Services. “The modest pickup in claims suggests that turnover may be increasing in weaker firms that are struggling with slowing growth,” Jefferies economists Thomas Simons and Aneta Markowska wrote in a note. They added that seasonal adjustments could be playing a role in elevated jobless claims. The Labor Department releases its July jobs report later today. |
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