US weekly jobless claims at highest point in nearly 8 months

Jul 14, 2022, 5:53 AM | Updated: 9:20 am

WASHINGTON (AP) — The number of Americans applying for unemployment benefits last week hit its highest level in nearly 8 months, but the total number of those collecting benefits fell.

Applications for jobless aid for the week ending July 9 rose by 9,000 to 244,000, up from the previous week’s 235,000, the Labor Department reported Thursday. First-time applications generally reflect layoffs. Analysts had expected the number to remain flat from the previous week.

The four-week average for claims, which evens out some of the week-to-week volatility, rose by 3,250 from the previous week, to 235,750.

The total number of Americans collecting jobless benefits for the week ending July 2 fell by 41,000 from the previous week, to 1,331,000. That figure has hovered near 50-year lows for months.

Last week, the Labor Department reported that employers added 372,000 jobs in June, a surprisingly robust gain and in line with the pace of the previous two months. Economists had expected job growth to slow sharply last month given the broader signs of economic weakness.

The unemployment rate remained 3.6% for a fourth straight month, matching a near-50-year low that was reached before the pandemic struck in early 2020.

The government also reported last week that U.S. employers advertised fewer jobs in May amid signs that the economy is weakening, though the overall demand for workers remained strong. There are nearly two job openings for every unemployed person.

On Wednesday, the government said that consumer prices soared 9.1% compared with a year earlier, the biggest yearly increase since 1981. From May to June, prices rose 1.3%, another huge increase, after prices had surged 1% from April to May.

The Labor Department reported Thursday that inflation at the wholesale level climbed 11.3% in June from a year earlier.

All of those figures reflect the unusual nature of the post-pandemic economy: Inflation is hammering household budgets, forcing consumers to pull back on spending, and growth is weakening, heightening fears the economy could fall into recession.

In an effort to combat the worst inflation in more than four decades, the Federal Reserve raised rates by a half-point in May and another rare three-quarter point increase last month. Most economists expect the Federal Reserve to jack up its borrowing rate another half-to-three-quarters of a point when it meets later this month.

Besides carving up the average American’s income, those rate increases also raise borrowing costs, rents and mortgage payments for corporations, which cuts into profits. Investors have responded by bailing from the equity market and piling into the bond market. Since the beginning of the year, the S&P 500 has declined about 20%, the Dow Jones industrials have fallen about 15% and the Nasdaq is down more than 28%.

Though the labor market is still strong, there have been some high-profile layoffs announced recently by Tesla, Netflix, Carvana, Redfin and Coinbase.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Maricopa County Recorder Stephen Richer speaks inside the Recorders Office, Nov. 9, 2022, in...
Associated Press

Dominion conspiracies highlighted by Fox lawsuit have election officials concerned for safety

Maricopa County officials are bracing for what could happen when it comes time to replace its contract for voting equipment.
2 days ago
A building is damaged and trees are down after severe storm swept through Little Rock, Ark., Friday...
Associated Press

Tornado causes widespread damage to buildings, vehicles in Little Rock

A tornado raced through Little Rock and surrounding areas Friday, splintering homes, overturning vehicles and tossing trees.
2 days ago
FILE - Former President Donald Trump speaks with reporters while in flight on his plane after a cam...
Associated Press

Worries grow that Trump indictment could undermine public confidence in other investigations

Trump’s attempts to overturn those results amid false claims of widespread fraud are at the heart of two other ongoing investigations.
2 days ago
(Facebook Photo/Superior Court of Arizona in Yavapai County)...
Associated Press

Arizona judge has cases reassigned following DUI arrest

The Arizona Supreme Court has ruled that all cases currently assigned to a Yavapai County Superior Court judge recently arrested on suspicion of extreme DUI will be reassigned to other judges.
6 days ago
Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
9 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
9 days ago

Sponsored Articles

(Photo: OCD & Anxiety Treatment Center)...

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.
...
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
US weekly jobless claims at highest point in nearly 8 months