The number of Americans filing for first-time state unemployment benefits climbed to the highest level since January, the latest sign that the labor market remains strong even as economic growth turns increasingly sluggish.
Initial jobless claims rose by 4,000 to 235,000 for the week ended July 2. This was slightly higher than economists had forecast.
While high in comparison to recent months, the initial claims figure is low by historical standards. During the pre-pandemic Trump era, which enjoyed a historically strong labor market, initial claims averaged around 230,000. In the post-Great Recession Obama administration years, claims averaged above 350,000 each week.
Despite headlines about layoffs, claims have not surged higher. The four-week average for claims, which smoothes out some of the week-to-week volatility, nudged up by 750 from the previous week, to 232,500.
The…
