A greater number of Americans have applied for unemployment benefits than in the preceding eight months.
Reuters reported on Thursday that the Labor Department data showed that the number of Americans asking for unemployment benefits rose for the third week in a row, reaching the highest level in eight months. The data was cited in the story.
According to the study, the number of people filing their first claims for state unemployment benefits increased by 7,000 to a seasonally adjusted total of 251,000 in the week leading up to July 16.
This result exceeds the predictions of the analysts who were polled by Reuters; the economists projected that there would be 240,000 applications for the week.
An increasing number of businesses in the United States are laying off workers, which has led to an increase in the number of people filing for unemployment.
According to Bloomberg, big technology companies such as Google, Apple, Meta, and Microsoft, among others, have lately declared that they will be halting hiring and conducting layoffs due to the uncertainties surrounding the global economy.
The Federal Reserve’s decision to raise interest rates, which are intended to combat inflation but are also likely to reduce demand for employees, has made the situation even more precarious.
Since March, the Fed has already increased the rate by a total of 150 basis points, and it is anticipated that they will increase it by an additional 75 basis points towards the end of July.
Despite the increase, however, the number of people filing for unemployment benefits in the United States is still below what most analysts consider to be a level that poses a risk to the economy.
The data indicates that hiring is still robust, with 372,000 jobs being created in June and 11.3 million jobs being open as of the end of May. This equates to around two opportunities for every unemployed American.