Last week, U.S. unemployment claims reached their highest level in 2.5 years, signalling a weakening labor market and falling inflation, raising hopes that the Federal Reserve may begin lowering interest rates by September, pending further data analysis by Fed Chair Jerome Powell.
U.S. Unemployment Claims Rise to 2.5-Year High – Prompting Economic Concerns
According to the New York Post, unemployment claims in the United States increased last week, reaching their highest level in 2.5 years by the end of June. This indicates that the job market is slowing. With inflation falling, many believe the Federal Reserve will begin lowering interest rates by September. However, Fed Chair Jerome Powell stated that they need additional evidence before making any changes.
The Labor Department announced 238,000 new unemployment claims for the week ending June 29, which was somewhat more than anticipated. States such as New York, California, and New Jersey experienced considerable increases. Meanwhile, the ADP Employment report showed that private companies gained 150,000 jobs in June, indicating that the labor market is not as robust as it was last year.
U.S. Unemployment Claims Benefits Surge Amid Rising Job Cuts and Economic Uncertainty
In November 2021, the number of individuals who received unemployment benefits reached its highest level, with 1.858 million people affected. A policy change in Minnesota was one of the factors that contributed to this increase. Meanwhile, U.S. employers reported 48,786 job cuts in June, which was lower than May but higher than the previous year. This highlights the cautious approach of businesses towards economic uncertainties and higher interest rates.
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