US unemployment claims decline despite layoffs

• The number of new claims for unemployment assistance in the United States decreased last week. While labour markets remain extremely tight, layoff reports are increasing.
•  This week, over 200 employees on Tesla’s autopilot team in California were laid go.
• The Fed’s aggressive rate raise campaign would have a significant negative impact on the economy.

Despite indications of layoffs in certain sectors of the economy, the number of new claims for unemployment assistance in the United States decreased last week.

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According to data issued by the US Department of Labor on Thursday, there were 231,000 seasonally adjusted first unemployment claims during the week of June 25. This was lower than the previous week’s total of 233,000, but higher than the 228,000 figure predicted by economists in a Reuters survey.

“The volume of claims is still very low, but we do not anticipate a significant decline from recent weeks.” Nancy Vanden Houten, the chief U.S. economist at Oxford Economics, stated. While labour markets remain extremely tight, layoff reports are increasing.

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This week, over 200 employees on Tesla’s autopilot team in California were laid go. Earlier this month, a number of cryptocurrency and real estate companies initiated layoffs in response to falling cryptocurrency prices and a decline in home demand.

In the future, Vanden Houten predicts that the Fed’s aggressive rate raise campaign would have a significant negative impact on the economy.