The latest report from the Labor Department reveals a significant increase in the number of Americans filing for unemployment benefits. For the week ending July 27, jobless claims surged by 14,000 to 249,000, marking the highest level in a year. This is the 10th consecutive week that claims have surpassed 220,000, a notable departure from the trend earlier in 2024 when claims were mostly below that threshold.
Despite the recent uptick in weekly unemployment claims, the labor market is generally considered healthy. These claims are seen as a gauge of layoffs, and while they have been elevated in the past few months, they still remain at historically low levels. The four-week average of claims, which helps to smooth out fluctuations, also increased by 2,500 to 238,000.
The data also shows a rise in the total number of Americans collecting unemployment benefits, reaching 1.88 million for the week of July 20, an increase of 33,000. This trend in continuing claims suggests that some individuals who are receiving unemployment benefits are encountering difficulties in securing new employment opportunities.
