The Labor Department reports that more Americans have filed jobless claims. Claims as of July 30 rose by 6,000 to 260,000 from the previous week’s 254,000.
The country’s number of jobs openings fell by the same token. It was the lowest since September 2021. Latest survey indicates that openings have fallen to 10.7 millions in the final day of June. That’s a drop of 605,000, or 5.4%.
Recent economic data continues to raise concerns about a shrinking economy. The latest GDP figures for the last week show a second consecutive quarter of negative growth. This suggests that the U.S. is in recession, despite Biden’s assurances.
According to the Associated Press, the report of jobless claims comes despite the strong economic measure that is the current job market.
Applications for jobless aid for the week ending July 30 rose by 6,000 to 260,000 from the previous week’s 254,000, the Labor Department reported Thursday. Generally, first-time applicants reflect layoffs.
The average weekly claim rate for four weeks, which accounts for any ups or downs in the weekly cycle, rose by the same week to 254,750.
For the week ended July 23, the total American population receiving jobless benefits rose 48,000 to 1,416,000. This number has been at or near the 50-year mark for several months.
Job hiring has also declined as a result of rising jobless claims and falling job openings.
Also, hiring slowed down in the month. It dropped 2% at 6.37 million. The level of quits was also lower, which is an indicator of worker confidence and mobility. But it still remains well above the previous record highs. Separations dropped by 1.4% to 5,93 million.
Federal Reserve officials pay close attention to the JOLTS figures as they examine the potential impact of interest rates on the labor market. In an attempt to curb inflation, the Fed increased four of its interest rates this year by 2.25 percent. This is the most significant increase since November 1981.
Today is expected to see July’s job figures. Experts predict that more than 250,000 jobs will be created. However, with over 10,000,000 job opportunities and an increasing number of unemployment claims, these numbers might not be enough.
The Biden administration has maintained that the labor market’s strength is what will keep America out of a recession, but with inflation still at record highs and outpacing wage growth, Americans still feel pain at the cash register. According to polling, Americans feel that America is already in recession and will soon be entering one.
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