Current:Home > reviewsThe number of Americans filing for jobless claims hits highest level in a year -BrightFuture Investments
The number of Americans filing for jobless claims hits highest level in a year
View
Date:2025-04-14 12:58:03
The number of Americans filing for unemployment benefits jumped to its highest level in a year last week, even as the labor market remains surprisingly healthy in an era of high interest rates.
Jobless claims for the week ending July 27 climbed by 14,000 to 249,000, from 235,000 the previous week, the Labor Department reported Thursday. It’s the most since the first week of August last year and the 10th straight week that claims have come in above 220,000. Before that stretch, claims had remained below that level in all but three weeks this year.
Weekly unemployment claims are widely considered as representative of layoffs, and though they have been slightly higher the past couple of months, they remain at historically healthy levels.
Strong consumer demand and a resilient labor market has helped to avert a recession that many economists forecast during the extended flurry of rate hikes by the Federal Reserve that began in March of 2022.
As inflation continues to ease, the Fed’s goal of a soft-landing — bringing down inflation without causing a recession and mass layoffs — appears within reach.
On Wednesday, the Fed left its benchmark rate alone, but officials hinted strongly that a cut could come in September if the data remained on its recent trajectory. And recent data from the labor market suggest some weakening.
The unemployment rate ticked up to 4.1% in June, despite the fact that America’s employers added 206,000 jobs. U.S. job openings also fell slightly last month. Add that to elevated layoffs and the Fed could be poised to cut interest rates next month, as most analysts expect.
The four-week average of claims, which smooths out some of the weekly ups and downs, rose by 2,500 to 238,000.
The total number of Americans collecting unemployment benefits for the week of July 20 jumped by 33,000 to 1.88 million. The four-week average for continuing claims rose to 1,857,000, the most since December of 2021.
Continuing claims have been on the rise in recent months, suggesting that some Americans receiving unemployment benefits are finding it more challenging to land jobs.
There have been job cuts across a range of sectors this year, from the agricultural manufacturer Deere, to media outlets like CNN, and elsewhere.
veryGood! (3217)
Related
- See you latte: Starbucks plans to cut 30% of its menu
- Honduran ex-president accused of running his country as a ‘narco-state’ set to stand trial in NYC
- Alexey Navalny's team confirms the death of Putin critic, says his mother is searching for his body
- Chynna Phillips says dad John 'blindsided' her on eve of her wedding with Billy Baldwin
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Chynna Phillips says dad John 'blindsided' her on eve of her wedding with Billy Baldwin
- Human remains recovered from car in North Carolina creek linked to 1982 cold case: Reports
- Summer House's Carl Radke Shares Love Life Update 6 Months After Lindsay Hubbard Breakup
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- Michael J. Fox gets standing ovation after surprise appearance at BAFTAs
Ranking
- Global Warming Set the Stage for Los Angeles Fires
- Walmart is buying Vizio for $2.3 billion. Here's why it's buying a TV manufacturer.
- Southern Baptists oust one church for having woman pastor, two others over sexual-abuse policy
- Walmart is buying Vizio for $2.3 billion. Here's why it's buying a TV manufacturer.
- This was the average Social Security benefit in 2004, and here's what it is now
- 'Oscar Wars' spotlights bias, blind spots and backstage battles in the Academy
- Sheryl Swoopes spoke to Caitlin Clark after viral comments, says she 'made a mistake'
- Want to view total solar eclipse from the air? Delta offering special flight from Texas to Michigan
Recommendation
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
Vermont governor seeks disaster declaration for December flooding
Ex-Nebraska basketball player sues university after sex scandal
Jason Carter on Jimmy Carter's strength of spirit
Why we love Bear Pond Books, a ski town bookstore with a French bulldog 'Staff Pup'
Jimmy Graham to join 4-person team intending to row across Arctic Ocean in July 2025
NCAA men's tournament Bracketology gets changed after after committee's top seeds stumble
Joe Alwyn Shares Rare Look into His Life Nearly One Year After Taylor Swift Breakup