Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 262,000 for the week ended Aug. 6, the Labor Department said on Thursday. Economists polled by Reuters had forecast 263,000 applications for the latest week.v
That's still below the 270,000-300,000 range that economists say would signal a material deceleration in the labor market.
The number of people receiving benefits after the first week of aid increased 8,000 to 1.428 million during the week ending July 30. The so-called continuing claims are a proxy for hiring.
WATCH: BIDEN CLAIMS INFLATION WAS 9% WHEN HE GOT IN OFFICE
The U.S. economy unexpectedly contracted in the second quarter, with consumer spending growing at its slowest rate in two years and business spending declining. The second straight quarterly decline in gross domestic product mostly reflected a more reasonable pace of inventory accumulation by businesses as job gains overall have stayed strong.
WATCH VIVEK: "WHAT IS THE CRIME THAT DONALD TRUMP COMMITTED?"
The economy created an unexpectedly robust 528,000 jobs in July, the unemployment rate fell back to its pre-pandemic low, and wage gains surprised to the upside, the Labor Department announced in a monthly employment report that makes it harder for the Fed to bring the economy into equilibrium soon.
NIGHT OPERATION UNCOVERS THE TRAGIC FATE OF THREE MUSICAL FESTIVAL HOSTAGES IN GAZA TUNNEL
There were 10.7 million job openings at the end of June, with 1.8 openings for every unemployed worker.
The U.S. central bank last month expanded its policy rate by another three-quarter of a percentage point as part of its effort to quash high inflation. The Fed has now hiked that rate by 225 basis points since March.
Although moving in fits and starts, claims have been slowly trending higher, consistent with some softening in demand for workers. The Federal Reserve wants to cool the labor market in order to get the inflation rate under control.
ANIMAL PRIDE: NBC'S UPCOMING 'QUEER PLANET' EXPOSES NATURE’S HIDDEN LGBTQ+ LIFE
“The rise in initial claims since early April is a cool breeze blowing at the hot labor market this summer” and a clear sign that layoffs are happening at a growing number of companies, said Stuart Hoffman, senior economic advisor at PNC Financial Services Group.
WILL BIDEN’S DEBATE DEMANDS TURN THE TIDE OR DROWN HIS CHANCES?
CAPITOL RECOGNITION: A TRUE AMERICAN EVANGELIST EARNS BIG HONOR...
vThe producer price index (PPI) declined 0.5 percent last month, the first negative monthly reading since April 2020, the Labor Department reported. The PPI climbed 1.0 percent in June. In the 12 months through July, it surged 9.8 percent after jumping 11.3 percent in June.
Discover alternative ideas that will make you think
Engage in mind bending debate
Earn points, rise in rank, have fun
