US Jobless Claims Hit Eight-Month High as Labor Market Cools

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3. U.S. weekly jobless claims hit fresh 8-month high

Reuters

U.S. weekly jobless claims hit fresh 8-month high

Thu, July 21, 2022 at 8:49 AM · 2 min read

(Reuters) - The number of Americans filing new claims for unemployment benefits rose for a third straight week last week to the highest in eight months, suggesting some cooling in the labor market amid tighter monetary policy and financial conditions.

Initial claims for state unemployment benefits rose 7,000 to a seasonally adjusted 251,000 for the week ended July 16 from a unrevised 244,000 a week earlier, the Labor Department said on Thursday. Economists polled by Reuters had forecast 240,000 applications for the latest week.

With employment booming through the last year, claims fell to a near-record low in March and had been hovering around 230,000 since June before the previous week's increase to the highest since last November. Still, they remain below the level most economists see as presenting a threatening signal for the job market and economy more widely.

There have been reports of layoffs in the interest rate-sensitive housing and manufacturing industries. Despite some loss of momentum, hiring has remained robust, with 372,000 jobs created in June and a broader measure of unemployment falling to a record low.

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