It’s been awhile.
The number of Americans filing claims for unemployment benefits jumped last week to the highest level they’ve been in a year.
According to statistics released by the U.S. Department of Labor, jobless claims jumped to 249,000 in the week ending July 27. That’s some 14,000 claims more than the 235,000 recorded the previous week.
It’s the most since the first week of August 2023 and the 10th straight week that claims have come in above 220,000. Before that stretch, claims had remained below that level in all but three weeks this year, the Associated Press reported.
On Wednesday, the Fed left its benchmark rate alone, but officials hinted that a cut could come in September if the data remained on its recent trajectory. And recent data from the labor market suggest some weakening.
American employers added 206,000 jobs in July, but the unemployment rate rose slightly to 4.1%. U.S. job openings also fell slightly last month. Add that to elevated layoffs and the Fed could be poised to cut interest rates next month, as most analysts expect.
The four-week average of claims rose by 2,500 to 238,000. The total number of Americans collecting unemployment benefits for the week of July 20 jumped by 33,000 to 1.88 million. The four-week average for continuing claims rose to 1,857,000, the most since December 2021.
