U.S. unemployment claims reach 235,000, the highest in almost 6 months

More Last week's profits and layoffs, when Americans filed for unemployment, remained low, but claims exceeded 230,000, the highest number in almost six months for the fifth straight week.

Applications for unemployment assistance for the week ending July 2 have increased to 235,000, up 4,000 from the previous week, the highest number since mid-January, the Ministry of Labor reported Thursday. First-time applications usually track the number of layoffs. Until early June, complaints did not exceed 220,000 from January and often fall below 200,000 this year.

The total number of Americans collecting unemployed benefits during the week ending June 25 increased by 51,000 from the previous week to 1,375,000. That number has been hovering near the 50-year low for months.

The numbers show that historically tight employment markets are easing as companies let go of workers in the face of economic uncertainty. Is shown.

"The labor market seems to be in flux," said Peter C. Earl, a researcher at the American Institute for Economic Research, an academic think tank, in a research note

"The decision on the federal reserve for the next six months will determine whether there will be a gentle slope or cliff before economic growth and employment for the rest of 2022 and 2023," he said. Said.

Focusing on the federal government, employment in a slowing economy

On Wednesday, the Ministry of Labor reported that US employers advertised less employment in MayOverall demand for workers remains strong in thesigns, but the economy is weakening.

Employers posted 11.3 million jobs at the end of May, down from about 11.7 million in April. The number of job openings in March reached 11.9 million, the highest level in the record more than 20 years ago. There are almost two jobs for each unemployed person.

The numbers reflect the extraordinary nature of the post-pandemic economy. Inflation is putting pressure on households, pushing consumers back on spending, slowing growth and increasing the risk of economic recession. Still, companies are still struggling to add more workers. Demand for travel and entertainment-related services is particularly strong.

The Ministry of Labor released a May employment report on Friday, and analysts expect employers to fill more than 276,000 jobs. It's not an unhealthy number, but it's the lowest number per month for over a year.

"The unresolved question is whether employment growth simply slows to a more sustainable pace, in line with labor growth, or the economy goes into recession and causes complete unemployment. That's right, "PNC Chief Economist Gas Forcher said in a research note.

Jamie Cox, managing partner of Harris Financial Group, said the layoff numbers are "going in the direction of the Fed." 

"It's never a good thing to see layoffs, but wage pressure may have peaked now," Cox said in a memo. "Weeks after these types of numbers, and perhaps the Fed is in a tight financial position enough to curb the scale of rate hikes," Cox said.

Increased layoffs in the tech field

Some very prominent companies, many in the tech field, recently announced layoffs.

Tesla CEO Elon Musk, an electric vehicle maker, admitted that the company has reduced about 10% of office workers, or 3.5% of its total workforce.

Netflix fired 150 employees in May and another 300 in June after the streaming entertainment giant reported losing subscribers for the first time in more than a decade.

Online car retailerCarvana has let go of about 2,500 workers, which is about 12% of the workforce. Online real estate broker Redfin is firing 8% of its workers under pressure from the housing market, which has been chilled by rising interest ratesAnother real estate company, Compass, has 450 people. You are dismissing an employee.

Cryptocurrency platform Coinbase Global is reducing the employment of about 1,100 people, about 18% of the world's workforce, following the fall in cryptocurrency prices.

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