Article Author:
Associated Press
Paul Wiseman
WASHINGTON (AP) — The US job market is Despite continuing signs of strength, the number of unemployment claims filed last week rose to its highest level since November.
Claims for unemployment assistance have increased from 14,000 to 262,000 and now he has increased five weeks in the past six weeks, the Labor Department reported Thursday.
After smoothing out weekly ups and downs, his four-week average of claims increased by 4,500 to 252,000, also his highest since November.
Jobless claims are a proxy for layoffs and are often seen as an early indicator of where the job market is headed.
So far this year, US employment has been very strong and resilient in the face of rising interest rates and slowing economic growth.
The Labor Department reported last week that US employers added 528,000 jobs last month. This is more than double his expectations of the forecaster. The unemployment rate dropped to 3.5% in July, hitting a 50-year low in early 2020 just before the coronavirus pandemic hit the U.S. economy.
US recovers from her 2020s with unexpected force A COVID-19 recession has caused businesses to scramble to find enough workers.
But the US economy faces challenges. Consumer prices are soaring, rising her 8.5% year-over-year in July, down slightly from her 40-year high of 9.1% in June. To combat inflation, the Federal Reserve has raised its benchmark short-term interest rate four times this year.
Rising borrowing costs are hurting. The economy contracted in the first half. This is one of the rules of thumb for starting a recession. But the strength of the job market is at odds with a recession.
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