US Continued Unemployment Claims Reach Highest in 31 Months... Increase for 9 Consecutive Weeks

Increasing for 9 Consecutive Weeks... Longest Growth Period in 6 Years
New Unemployment Claims Also Exceed Expectations

Last week in the United States, the number of continuing unemployment claims, which are filed by those claiming unemployment benefits for two weeks or more, reached the highest level in 31 months for the second consecutive week. Continuing unemployment claims have increased for nine consecutive weeks, marking the longest period of growth in six years.

According to the U.S. Department of Labor on the 3rd (local time), the number of continuing unemployment claims for the week of June 16-22 was 1,858,000, an increase of 26,000 from the previous week.

For the second week in a row, this figure recorded the highest level since November 2021 (1,878,000). Continuing unemployment claims have also risen for nine consecutive weeks, maintaining the longest growth streak in six years since 2018.

New unemployment claims for the week of June 23-29 were recorded at 238,000. This exceeded both the expert forecast (234,000) and the previous week's figure (234,000).

The four-week moving average of unemployment claims, which smooths out volatility to better identify trends, was 238,500, an increase of 2,250 from the previous week.

Bloomberg News analyzed, "More people are struggling to find new jobs," adding, "As borrowing costs rise and the economy slows, labor demand is gradually becoming more limited."

Last month, the increase in private sector employment in the U.S. also declined for the third consecutive month, signaling a continued slowdown in the U.S. labor market.

According to private labor market research firm ADP, private sector employment increased by 150,000 in June. This was below the market expectation of 163,000 and also represented a smaller increase compared to May (157,000).

Wages for workers who have been employed at the same job for the past 12 months rose by 4.9% year-over-year, marking the lowest level since August 2021. Wage growth for job changers also slowed to 7.7%.