States reported that 237,000 workers filed for new unemployment benefits during the week ending July 8, a decrease of 12,000 from last week’s revised level.
About 1.72 million workers continue to claim unemployment benefits. Economists point out that unemployment remains low by historic standards. The unemployment rate edged down to 3.6 percent in June, and although the labor market remains strong, some industries have experienced layoffs, mostly due to overhiring during the pandemic.
Weekly unemployment claims are slightly elevated but not as high as some thought they may be this year as the effects of interest rate hikes spread through the economy. Some still expect a mild recession by the second half of the year or in early 2024, while others point to the labor market’s remarkable resilience throughout the lengthy interest rate hike campaign designed to slow it down.
