The number of applications for unemployment benefits in the United States fell slightly last week, but remained high, indicating that the labor market is slowing.
The Labor Department said Wednesday that initial jobless claims fell 5,000 to 245,000 in the week ended June 14. The figure was in line with economists' forecasts in a Bloomberg survey.
Still, the level was near an eight-month high. Continuing claims, which reflect the number of people still receiving benefits, fell by just 6,000 to 1.945 million.
The continuing claims index reflects workers who filed claims last week and have yet to find work. The four-week average of new claims rose to 245,500, the highest level since August 2023, marking a two-month steady increase.
Source: LSEG
Data often fluctuates during the summer and major holidays, but this time it's clearly more than just noise. The timing coincides exactly with the June nonfarm payrolls report, adding to the importance of the number.
Fed keeps interest rates steady as housing market stagnates and layoffs expand
The report was released a day earlier than expected due to Juneteenth. At the same time, Federal Reserve officials concluded a two-day meeting, expected to keep interest rates in a range of 4.25% to 4.50%.
That level has been in place since December, with no signs of a cut. Officials are monitoring the impact of tariffs imposed by President Donald Trump, as well as the global fallout from the Israel-Iran conflict. While the price increase from the tariffs is small, the full scope of the impact is still being assessed.
Industries hit by mass layoffs include transportation, warehousing, construction, manufacturing, accommodation, food services, health care, agriculture, retail, wholesale trade, government, arts, entertainment and professional services.
Minnesota saw a spike as school staff were not teaching during the summer break. Pennsylvania and Oregon also saw claims increase. In contrast, Illinois, California and Georgia saw new claims decline before the seasonal adjustment.
Hiring remains weak. Nonfarm payrolls rose by just 139,000 in May, down from 193,000 a year earlier. Employers are in no rush to expand their teams, reflecting sluggish market sentiment. Next week’s data on how many people have extended their benefits beyond the first week will provide a clearer picture of the ability of recently unemployed workers to find work.
The labor market is just one part of the slowdown. Permits for future single-family homes fell 2.7% in May to an annual rate of 898,000 units, the lowest since April 2023, the Census Bureau said. Builders have begun to cut back as high interest rates keep buyers out of the market. That has led to a surge in housing inventory, which is at its highest level since late 2007, reducing the incentive to build new homes.
Source: https://tintucbitcoin.com/thi-truong-my-tri-tre-crypto-co-the-thang/
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