The number of Americans filing for unemployment benefits rose less than expected last week, potentially easing some concerns about the health of the labor market following the disappointing July jobs report.
Figures released Thursday by the Labor Department show initial claims for the week ended Aug. 3 fell by 17,000 to 233,000, below the 240,000 estimate by Refinitiv economists. However, that remains higher than the 2019 pre-pandemic average of 218,000 claims.
Continuing claims, filed by Americans who are consecutively receiving unemployment benefits, hit 1.87 million for the week ended July 27, up 6,000 from the previous week. It marks the highest level for continuing claims since November 2021.
“Investors have to be careful not to read too much into one report like they did recently with the last payroll report,” said Jeffrey Roach, chief economist at LPL Financial. “A holistic interpretation of the labor market is hiring will likely slow throughout the rest of the year, putting some downside risk to income growth.”
This is a developing story. Please check back for updates.
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