US unemployment rate rises again, near highest since November | Unemployment news

The Labor Department said the state’s initial jobless claims rose 6,000 to 260,000 for the week ended July 30 – hovering near an eight-month high.

The number of Americans filing new claims for unemployment insurance rose slightly last week, suggesting some easing in the historically tight labor market.

Initial claims for state unemployment rose 6,000 to 260,000 for the week ended July 30, Labor Department data is displayed on Thursday. The week ending July 23 saw a steady increase in state pension claims to 1.42 million, the highest number since early April.

The claims data comes ahead of Friday’s jobs report, which will show how many jobs the US added in July and whether the unemployment rate will hold at a near 50-year low. .

Nonfarm payrolls likely added 250,000 jobs last month after rising 372,000 in June, according to a Reuters survey of economists.

Jobless claims have increased over the past few months as companies, especially in the tech sector, announced layoffs and hiring suspensions due to an increasingly volatile economy.

More data from the Labor Department this week shows that job numbers fell in June to a nine-month low, suggesting labor market tightness may be easing amid growing economic challenges.

As the Federal Reserve increase Its commitment to prevent highest inflation since 1981 due to continued increase in borrowing costs, which in turn will likely reduce the demand for labor, this trend is expected to continue.

Last week, the US central bank raised interest rates by 75 basis points. The Federal Reserve or the Fed, as it is commonly known, has now raised borrowing costs by 225 basis points since March.

Employment, layoffs

Starting in June, the number of jobless claims exceeded 230,000, reaching an eight-month high of 261,000 in mid-July, according to the Labor Department.

However, unemployment claims remain below the 270,000–300,000 range, which experts believe will indicate a downturn in the labor market.

United States gross domestic product (GDP) contract 1.3% in the first half of 2022, meeting the standard definition of a recession. But last week, the Biden administration dismissed that view, pointing to a historically tight labor market.

Two consecutive quarters of decline in U.S. GDP were mainly due to intense inventory fluctuations and a trade deficit related to a congested global supply network caused by the coronavirus pandemic.

The Labor Department said last week that there were 10.7 million jobs at the end of June. That means there are about two job openings for every unemployed worker.

Employee layoffs remain low even though some big companies like Apple and Amazon have announced plans to slow hiring.

On Wednesday, retail giant Walmart was the latest to say it was cutting hundreds of jobs. The news came just a week after Walmart slashed its growth forecast, blame increase in food and gas prices because forcing shoppers to cut back on items like clothing offers higher profit margins.

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