The number of Americans filing new claims for unemployment benefits last week rose for the third consecutive week, hitting an 8-month peak, indicating some slowdown in the labor market as monetary policy and financial conditions tighten.
The US Department of Labor said Thursday, July 21, that first-time applications for government benefits jumped 7,000 to 251,000 in the week ending July 16.
Economists polled by Archyde.com had forecast 240,000 orders last week.
With hiring rebounding over the past year, claims fell to a record low in March and had hovered around 230,000 since June before increasing the previous week to their highest levels since last November.
However, it is still below the level that most economists believe represents a threatening signal to the labor market and the economy more broadly.
There were reports of layoffs in the housing and manufacturing sectors, which are two of the most vulnerable to interest rate movements. Despite losing some momentum, demand for labor remains strong, with 372,000 jobs created in June and a broader unemployment indicator dropping to a record low.
The demand for labor remains fairly strong as well. There were 11.3 million jobs in May, with nearly two jobs for every unemployed person.
The Federal Reserve is expected to raise interest rates by another 75 basis points at the end of this month, a move boosted by annual consumer price inflation, which rose 9.1 percent in June in the biggest increase since November 1981.
Source: cnbcarabia