US Unemployment Claims Reach 238,000: Highest Level Since November 2021

Services

Stock Market Masterclass

Equity Trading with CA Abhay

FNO Stocks with CA Abhay

Equity Investment with CA Abhay

Option Trading with CA Abhay

US Unemployment Claims Rise to 238,000, Highest Since November 2021

Team FS

03/Jul/2024

Key Points:

US unemployment claims rose by 4,000 to 238,000 in the last week of June, surpassing market expectations of 235,000.

Continuing unemployment claims increased by 26,000 to 1,858,000, the highest since November 2021.

The four-week moving average of unemployment claims rose by 2,250 to 238,500, indicating a continued softening labor market.

The number of people claiming unemployment benefits in the US increased by 4,000 to 238,000 in the last week of June, surpassing market expectations of 235,000. This figure remains close to the 10-month high of 243,000 recorded earlier in the month, indicating a persistent trend in the labor market.

In addition to the rise in initial unemployment claims, continuing unemployment claims also saw a significant increase, rising by 26,000 to 1,858,000 in the previous week. This is the highest level of continuing claims since November 2021, further underscoring the signs of a softening labor market.

These results align with other key economic releases that suggest the US labor market continued to soften during this period. The data supports growing expectations that the Federal Reserve may lower benchmark borrowing costs by September to provide economic support amidst signs of a slowdown.

The four-week moving average of unemployment claims, which helps reduce week-to-week volatility, rose by 2,250 to 238,500. This increase in the moving average indicates a consistent trend of rising unemployment claims, reinforcing concerns about the health of the labor market.

The rise in both initial and continuing unemployment claims reflects broader economic challenges, including the impact of higher interest rates and economic uncertainty. As the labor market shows signs of weakening, the pressure mounts on the Federal Reserve to consider monetary policy adjustments to support economic growth.

The current data suggests that the US labor market is beginning to feel the effects of prolonged higher interest rates, leading to slower job growth and increased unemployment claims. This trend is expected to continue, raising the likelihood of the Federal Reserve implementing rate cuts in the near future to mitigate economic slowdown and stabilize the labor market.

In summary, the number of people claiming unemployment benefits in the US rose to 238,000 in the last week of June, exceeding market expectations and remaining close to the recent 10-month high. Continuing unemployment claims reached their highest level since November 2021, at 1,858,000. The four-week moving average of unemployment claims also increased, indicating a softening labor market. These trends contribute to the growing expectation that the Federal Reserve will lower borrowing costs by September to support the economy amidst signs of weakening labor market conditions.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.

Services

US Unemployment Claims Rise to 238,000, Highest Since November 2021

Related News