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Weekly US unemployment claims rise as job market softens

Economy Jobs Report
Posted at 4:55 PM, Aug 04, 2022
and last updated 2022-08-04 20:07:18-04

As U.S. employers deal with the impact of high inflation and lackluster economic growth, the number of jobless claims filed last week increased from previous weeks.

While there are signs that the labor market could be softening, conditions overall have remained tight, Reuters reported.

A gain of some 372,000 jobs was added in June. It's unclear if the Federal Reserve will continue to sharply raise interest rates to try and cool the economy and slow increases in the cost of goods. Back in early June, the unemployment rate remained at 3.6% after a fourth straight month at that rate, according to government data.

According to data from the Bureau of Labor Statistics, similar jobless rates were released in the weeks that followed. Minnesota had the lowest jobless rate at 1.8 percent. New Mexico came near the top of the list at 4.9 percent. Washington, D.C. topped the list at 5.5 percent.

Total jobless claims last week came to 260,000, which is near the highest level since November as the U.S. labor market shows a shift, CNBC reported.

The Bureau of Labor Statistics is set to release new numbers for jobless claims in July this week. According to reporting from CNBC, the report is expected to show that the U.S. economy added 258,000 positions in July, which compares to 372,000 in June.

Stuart Hoffman, a senior economic advisor at PNC Financial Services, said, “The labor market remains in good shape as the summer quarter progresses, but the rise in initial claims since early April is a cold breeze blowing at the hot labor market this summer.”