Jobless Claims Surge To Highest Level in Nearly A Year, Ongoing Joblessness Hits Highest Since 2021

[mystery-ak]

Jobless Claims Surge To Highest Level in Nearly A Year, Ongoing Joblessness Hits Highest Since 2021

John Carney 1 Aug 2024

Jobless claims unexpectedly surged higher last week, rising by 14,000 to nearly a one year high of 249,000.

This was higher than even the most pessimistic forecasts in Econoday’s survey and far above the consensus estimate of 236,000.

The number of people collecting unemployment benefits beyond their initial week increased by 33,000 to 1.88 million. This is the highest number of continuing claims since 2021, when the economy was still staggering from the pandemic. The rise continuing claims indicates that Americans who have lost their jobs are having more trouble finding new work.

The biggest increase in new claims was in Michigan. Texas, which was hit by a hurricane recently, saw a sizeable increase that might be temporary.

The Federal Reserve said this week that the risks of labor market weakening were roughly balanced now with the risks of rising inflation.


more
https://www.breitbart.com/economy/2024/08/01/jobless-claims-surge-to-highest-level-in-nearly-a-year-ongoing-joblessness-hits-highest-since-2021/

[Kamaji]

There's that word again - "unexpected"

[mystery-ak]

Disaster: U.S. Economy Added Just 114,000 Jobs in July, Unemployment Surges

John Carney 2 Aug 2024

Employers in the United States added 114,000 workers to their payrolls in July, the Department of Labor said Friday, and the unemployment rate jumped to 4.3 percent.

Economists had been expecting 180,000 jobs and an unemployment rate of 4.1 percent.

The disappointing payroll growth and the sudden jump in unemployment suggest that the economy may be heading into a recession.

The 4.3 percent unemployment rate brings the three-month average 50 basis points above the lowest three-month average over the past 12 months, a threshold known as the “Sahm Rule” that historically has indicated the beginning of a recession.

Fed chairman Jerome Powell on Wednesday said that while recessions have typically followed a triggering of the Sahm rule, a recession was not guaranteeed.

“It’s not like an economic rule, where it’s telling you something must happen,” he said.

more
https://www.breitbart.com/economy/2024/08/02/disaster-u-s-economy-added-just-114000-jobs-in-july/

[mountaineer]

Summary from 1440 News (sent daily to email):

US employers added fewer-than-expected nonfarm jobs in July as the country's unemployment rate ticked up for the fourth consecutive month to 4.3%, the highest since October 2021, according to government data released yesterday. The latest report spurred a sell-off in the US stock markets, with all three major indexes closing down and the Nasdaq composite entering correction territory (S&P 500 -1.8%, Dow -1.5%, and Nasdaq -2.4%).

US employers added 114,000 jobs last month, below economist estimates of 185,000 and down from the downwardly revised 179,000 jobs in June. Average hourly earnings in July rose 0.2% month-over-month and 3.6% year-over-year, both below economist estimates. The data comes after the Federal Reserve on Wednesday signaled an interest rate cut was likely in September. Analysts say the report suggests the Fed could slash rates by half a percent. See a breakdown of data here.

Meanwhile, the average rate on the 30-year fixed mortgage dropped to 6.4% Friday, the lowest since April 2023. The average rate on a 15-year fixed mortgage dropped to 5.9%, the lowest since May 2023.