AVN 63.94 Decreased By ▼ -1.02 (-1.57%)
BAFL 29.95 Decreased By ▼ -0.30 (-0.99%)
BOP 4.64 No Change ▼ 0.00 (0%)
CNERGY 3.88 No Change ▼ 0.00 (0%)
DFML 13.40 Decreased By ▼ -0.15 (-1.11%)
DGKC 40.64 Decreased By ▼ -1.56 (-3.7%)
EPCL 47.01 Increased By ▲ 1.20 (2.62%)
FCCL 10.99 Decreased By ▼ -0.42 (-3.68%)
FFL 5.05 Decreased By ▼ -0.12 (-2.32%)
FLYNG 5.76 Decreased By ▼ -0.04 (-0.69%)
GGL 9.78 Decreased By ▼ -0.26 (-2.59%)
HUBC 61.85 Decreased By ▼ -1.45 (-2.29%)
HUMNL 5.66 Decreased By ▼ -0.09 (-1.57%)
KAPCO 27.52 Decreased By ▼ -0.31 (-1.11%)
KEL 2.14 Increased By ▲ 0.01 (0.47%)
LOTCHEM 24.23 Decreased By ▼ -1.10 (-4.34%)
MLCF 20.78 Decreased By ▼ -0.79 (-3.66%)
NETSOL 83.19 Decreased By ▼ -1.80 (-2.12%)
OGDC 86.27 Increased By ▲ 0.04 (0.05%)
PAEL 10.78 Decreased By ▼ -0.14 (-1.28%)
PIBTL 4.11 Decreased By ▼ -0.12 (-2.84%)
PPL 76.26 Decreased By ▼ -2.26 (-2.88%)
PRL 13.66 Increased By ▲ 0.04 (0.29%)
SILK 0.88 Decreased By ▼ -0.01 (-1.12%)
SNGP 40.86 No Change ▼ 0.00 (0%)
TELE 5.87 Decreased By ▼ -0.13 (-2.17%)
TPLP 15.61 Decreased By ▼ -0.39 (-2.44%)
TRG 109.97 Decreased By ▼ -1.73 (-1.55%)
UNITY 13.80 Decreased By ▼ -0.19 (-1.36%)
WTL 1.14 Increased By ▲ 0.01 (0.88%)
BR100 3,967 Decreased By -58.9 (-1.46%)
BR30 14,185 Decreased By -217.7 (-1.51%)
KSE100 39,871 Decreased By -579.3 (-1.43%)
KSE30 14,898 Decreased By -212.2 (-1.4%)
Follow us

WASHINGTON: The number of Americans filing new claims for unemployment benefits increased last week, suggesting some softening in the labor market, though overall conditions remain tight.

Initial claims for state unemployment benefits rose 6,000 to a seasonally adjusted 260,000 for the week ended July 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast 259,000 applications for the latest week.

Claims broke above 230,000 at the beginning of June, hitting an eight-month high of 261,000 in mid-July. Still, they remain below the 270,000-300,000 range that economists say would signal a material slowdown in the labor market.

The number of people receiving benefits after an initial week of aid increased 48,000 to 1.416 million during the week ending July 23. The so-called continuing claims are a proxy for hiring.

The economy contracted 1.3% in the first half, meeting the standard definition of a recession. But with the labor market still churning out jobs at a brisk clip and layoffs low, the economy is not in recession, though overall momentum has cooled. Wild swings in inventories and the trade deficit tied to snarled global supply chains have been largely to blame for the two straight quarterly declines in gross domestic product.

There were 10.7 million job openings at the end of June, with 1.8 openings for every unemployed worker.

Canada trade surplus widens on record energy exports, but seen narrowing

For now, layoffs remain very low. A separate report from global outplacement firm Challenger, Gray & Christmas on Thursday showed job cuts announced by US-based companies dropped 20.6% to 25,810 in July.

So far this year, employers have announced 159,021 layoffs down 31.3% from the same period last year and the fewest in January-July since 1993.

Job cuts this year have been concentrated in the automotive, technology and financial sectors. Chip shortages have hampered the auto industry, while layoffs in the technology and financial sector reflect cooling demand because of higher interest rates.

The Federal Reserve last week raised its policy rate by another three-quarters of a percentage point. The US central bank has now hiked that rate by 225 basis points since March.

“Job cut levels are nowhere near where they were in the 2001 and 2008 recessions right now, though they may be ticking up,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas. “If we’re in a recession, we have yet to feel it in the labor market.”

The claims data has no bearing on July’s employment report, which is scheduled to be released on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 250,000 jobs in last month after rising by 372,000 in June.

Comments

Comments are closed.

US weekly jobless claims increase; layoffs fall in July

Rupee closes at fresh low of 269.63 against US dollar as the great fall continues

Pakistan facing adverse consequences of Ukraine conflict: FM Bilawal

Islamabad Court sends Fawad to jail on judicial remand

UAE president’s visit to Islamabad postponed over ‘bad weather’

Sheikh Rashid’s Lal Haveli residence sealed over ‘illegal occupation’

Asif Ali Zardari sends legal notice to Imran Khan over ‘assassination’ remarks

Abu Dhabi’s IHC plans to invest $381mn in Adani Enterprises

KSE-100 falls over 500 points in aftermath of Peshawar blast

Inflation to cross 30% as rupee depreciation, petrol prices bite: report

Oil steadies as rate hikes loom, Russian flows stay strong