Jobless Claims Rise to 199,000, Labor Department Reports
The number of Americans applying for unemployment benefits increased last week to 199,000. Layoffs remain within a historically healthy range.
Filings for U.S. unemployment benefits rose by 1,000 to 199,000 in the week ended August 1, the Labor Department reported Thursday. The prior week’s figure was revised up by 1,000 to 198,000.
Weekly jobless claims are considered a key indicator of layoffs and the health of the U.S. job market. Claims have largely stabilized between 200,000 and 250,000 since the economy emerged from the COVID-19 pandemic.
The rise in claims comes as the Federal Reserve signals readiness to raise interest rates to combat inflation, which could curb business hiring. Job growth slowed significantly in May, and several major companies, including Verizon, Amazon, and Microsoft, have recently reduced their workforces.
The four-week moving average of jobless claims fell by 4,500 to 198,750, smoothing out weekly volatility. The Labor Department's report reflects caution in the U.S. labor market and potential shifts ahead.