American unemployment claims are at their highest level in eight months

• Applications for jobless aid for the week ending July 16 rose by 7,000 to 251,000.
• That’s the most since Nov. 13, 2021 when 265,000 Americans applied for benefits.
• The total number of Americans collecting unemployment benefits rose by 51,000 from the previous week.

It may be an indication of a worsening labour market that the number of Americans; requesting unemployment benefits last week reached its highest level in more than eight months.

The Labor Department said on Thursday that the number of applications for unemployment benefits; increased by 7,000 to 251,000 for the week ending July 16 from 244,000 the previous week. Since Nov. 13, 2021, when 265,000 Americans applied for benefits, this is the highest number.

The data company FactSet asked analysts about their predictions for the amount; who predicted 242,000.

Applications from new applicants typically indicate layoffs.

The claims four-week average, which lessens week-to-week volatility; increased by 4,500 from the prior week to 240,500.

The overall number of Americans claiming unemployment benefits increased to 1,384,000 for the week ending July 9; from 1,384,000 the week before. For months, that number has been close to 50-year lows.

The Labor Department earlier this month announced that companies created 372,000 jobs in June; a surprise large increase and a rate comparable to the preceding two months. Given the more general indicators of economic deterioration; economists had anticipated that employment growth would decline significantly last month.

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For a fourth consecutive month, the unemployment rate stayed at 3.6 percent; matching a level that was attained just before the pandemic began in early 2020; and was not achieved for almost 50 years.

The agency also stated earlier in July that although there were fewer jobs posted in the United States in May; due to indications that the economy was slowing, the demand for employees generally remained high. For every unemployed person, there are about two job vacancies.

According to data released by the government this week, consumer prices continue to skyrocket; rising 9.1 percent in June from a year earlier, the highest annual increase since 1981.

The amount of Americans requesting unemployment benefits last week reached its highest level in over 8 months; while the overall number of recipients of benefits decreased. The Labor Department also revealed last week that wholesale inflation increased 11.3 percent in June; compared to the same month a year earlier.

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