US Weekly Initial Jobless Claims at 249,000 Last Week... Highest in 1 Year

Continued Unemployment Benefit Claims Reach Highest in 2 Years and 8 Months

Last week, the number of new unemployment benefit claims in the United States exceeded market expectations, reaching the highest level in about a year. This added another signal that the U.S. labor market is slowing down.

According to the U.S. Department of Labor on the 1st (local time), the number of new unemployment benefit claims for the week of July 21-27 was recorded at 249,000. This surpassed both the expert forecast (236,000) and the revised figure for the previous week (235,000).

The number of continuing unemployment benefit claims, which counts those claiming benefits for at least two weeks, was 1,877,000 for the week of July 14-20. This is the highest level in 2 years and 8 months since November 2021. It exceeded both the market forecast (1,860,000) and the revised figure for the previous week (1,844,000).

The day before, Jerome Powell, Chair of the U.S. Federal Reserve (Fed), hinted at the possibility of a rate cut in September, expressing concerns about employment risks. The Federal Open Market Committee (FOMC) policy statement also revealed concerns about employment. The Fed removed the previously included phrase "inflation risks" and added the phrase "the risks to both sides" (employment and prices), signaling its intention to pay attention not only to price stability but also to full employment.

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