The Initial applications for state unemployment benefits in the United States fell last week, which could allay fears of a material change in the labor market.
Initial claims for state unemployment benefits fell by 6,000, to a seasonally adjusted level of 233,000 in the week ending June 22, the Department of Labor reported Thursday. The data included the new Liberation Day holiday last Wednesday.
The numbers had climbed to the upper end of their 194,000-243,000 range this year. And while requests tend to be volatile around holidaysEconomists are divided over whether the recent increase reflected a surge in layoffs or a repeat of the volatility experienced during the same period last year.
Unemployment claims are at low levels
However, unemployment benefit applications remain at historically low levels and are being closely watched to see if employers are laying off more people as the economy slows in response to the Federal Reserve’s 525-basis-point interest rate hikes beginning in 2022 to tame inflation.
The Government also confirmed on Thursday in a separate report that economic growth slowed sharply in the first trimester.
He Gross domestic product increased last quarter at an annualized rate of 1.4%revised slightly upward, the Commerce Department’s Bureau of Economic Analysis said in its third estimate of GDP for the January-March quarter.
The evolution of the economy in the US
Previously A growth of 1.3% had been estimated. The economy expanded at a rate of 3.4% in the fourth quarter.
The The Fed has kept its overnight benchmark rate in the current range of 5.25%-5.50%. since last July.
The number of people receiving benefits After an initial week of help, an approach to hiring, increased by 18,000to a seasonally adjusted figure of 1.839 million, during the week ending June 15, according to the claims report.
The so-called continuous claims data covered the period during which The Government surveyed households to find out the unemployment rate for June.
The Unemployment rate rose to 4% in Mayfor the first time since January 2022. Most economists, however, did not consider the rate at the current level to pose a danger to the labor market, arguing that the advance was concentrated among the 35-44 age group , recent immigrants and certain sectors.
Source: Ambito
