Last week, U.S. unemployment claims rose to their highest level in 2.5 years, reflecting a slowing job market alongside decreasing inflation, prompting expectations that the Federal Reserve may start reducing interest rates by September, pending further data assessment by Fed Chair Jerome Powell.
U.S. Unemployment Claims Rise to 2.5-Year High – Prompting Economic Concerns
According to the New York Post, unemployment claims in the U.S. rose last week, reaching the highest level in 2.5 years by the end of June. This shows that the job market is slowing down. With inflation also decreasing, many hope the Federal Reserve will start lowering interest rates by September. However, Fed Chair Jerome Powell said they need more data before making any changes.
The Labor Department reported 238,000 new unemployment claims for the week ending June 29, slightly more than expected. States like New York, California, and New Jersey saw significant increases. Meanwhile, the ADP Employment report showed private companies added 150,000 jobs in June, indicating the job market isn’t as strong as last year.
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238,000: U.S. Unemployment Claims Rise to 2.5-Year High – Fueling Rate Cut Speculation (PHOTO: New York Post)
U.S. Unemployment Claims Benefits Surge Amid Rising Job Cuts and Economic Uncertainty
The tally of individuals receiving unemployment benefits climbed to 1.858 million, marking the highest level since November 2021. This uptick was influenced in part by a recent policy change in Minnesota. Alongside this, U.S. employers reported 48,786 job cuts in June, a decrease from May but an increase compared to last year, underscoring cautious business sentiments amid economic uncertainties and elevated interest rates.
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