The orders of unemployment subsidies rose above market expectations, although the level of unemployment remains stable. It was also known that productivity had an improvement in the second quarter.
The Applications for unemployment subsidies in the United States increased to its highest level in a monthwhich suggests that job creation weakens and fired workers take longer to find new occupations. It is a new fact that demonstrates the growing fragility of the North American labor market from the Start of Donald Trump’s commercial war and a growing concern for the Federal Reserve (Fed).
The new unemployment subsidy requests They totaled The 226,000 applications During the past week, a 7,000 rise compared to the previous measurement and the highest level since the week ending on July 5, The Labor Department reported This Thursday. It was a fact that projected by the consensus of the economists, who had projected 221,000 applications.
In addition, it was also known that continuous requests, that is, people who continue to receive benefits, increased by 38,000the greatest increase since the end of May. In that way, The unemployment subsidy reached 1.97 million people in the United Statesthe highest level since November 2021.
Employment is cooling in the US
That data is an indirect indicator of the level of employment within the North American labor market. Therefore, if there is an increase in hiring, The level of continuous applications should lower, something that currently does not happen. In any case, the last results also indicate that employers still did not turn to mass dismissals while the economy loses impulse. That helped maintain the relatively low unemployment rate, in 4.2% in July.
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So much, the labor market experience a slowdownwith official data last week that showed a job creation much lower than the expectations of analysts for July. Besides, The creation of employment of the previous two months were reviewed downward in almost 260,000 positionsa correction that led Trump to throw the director of the Office of Labor Statistics (BLS).
Productivity improvement
Meanwhile, the bls He also reported Thursday that labor productivity was recovered more than expected in the second quarterwhich relieved the increase in labor costs recorded at the beginning of the year.
The productivity of the non -agricultural business sector grew 2.4% in the April-June periodafter declining 1.8% in the first three months of the year, the statistical office reported.
Besides, Production per worker increased 3.7%the greatest improvement since the third quarter of 2023, while the growth of unit labor cost was moderated 1.6% from 6.9% reviewed upwards in the first quarter.
Source: Ambito
