New Unemployment Benefit Claims Last Week Also Exceed Expectations
Last week, the number of new unemployment benefit claims in the United States exceeded market expectations. Continuing claims for unemployment benefits, which represent those claiming benefits for more than two weeks, reached their highest level in three years and eight months, further heightening concerns about the recent slowdown in employment indicators.
According to the U.S. Department of Labor on August 7 (local time), the number of new unemployment benefit claims for the week of July 27 to August 2 was 226,000. This figure is an increase of 7,000 from the previous week’s 219,000 and is 5,000 higher than the market expectation of 221,000.
The number of continuing unemployment benefit claims for the week of July 20 to 26 was 1,974,000, an increase of 38,000 from the previous week’s 1,936,000. Not only does this significantly exceed the market forecast of 1,950,000, but it is also the highest level since November 2021. The increase in long-term unemployment benefit claims indicates that job seekers are finding it increasingly difficult to secure new employment.
This is in line with the weak July nonfarm payroll data released on August 1. Nonfarm payrolls in July increased by only 73,000, falling well short of the forecast of 106,000. In particular, the employment growth figures for May and June were also revised downward to 19,000 and 14,000, respectively, a significant decrease from the previously announced figures of 144,000 and 147,000.
Analysts attribute these signs of a slowdown across the labor market to the aggressive tariff policies of U.S. President Donald Trump and the resulting economic uncertainty, which have made companies hesitant to hire new employees. It remains to be seen whether unemployment benefit claims will continue to rise in the coming months.
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