Unemployment claims by US citizens rose last week, reaching their highest level since last November, despite continuing US labor market In showing signs of strength.
And the US Department of Labor stated that unemployment benefits jumped by 14 thousand additional applications to reach 262 thousand, to be the highest level this year, in addition to this increase is the fifth weekly increase in the past six weeks.
The four-week average, which moderates the weekly ups and downs, rose by 4,500 to 252,000, also its highest level since last November.
The number of Americans collecting traditional unemployment benefits also rose by 8 thousand in the week ending July 30 to 1.43 million, the highest level since early April.
Jobless claims are a proxy for layoffs and are often seen as an early indicator of the direction the labor market is headed.
So far this year, US employment has been remarkably strong and resilient in the face of high interest rates and weak economic growth.
The Labor Department reported last week that US employers added 528,000 jobs last month, more than double what experts had expected, and the unemployment rate fell to 3.5% last July, its lowest level in 50 years.
Although the United States quickly recovered from the recession caused by the closures of the Corona epidemic, the American economy faces many challenges, as consumer prices rose by 8.5% last July compared to what they were in the previous year, which is slightly lower than its highest level in 40 years old.
To combat inflation, the Federal Reserve raised its benchmark short-term interest rate four times this year.
“Demand for labor remains very strong,” wrote economists Thomas Simmons and Anita Markowska of Jefferies. “The modest recovery in claims suggests that sales volume may be picking up at weaker companies struggling with slowing growth,” they added.
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