By Alice Seeley
On June 30, the U.S. Labor Department reported that the weekly jobless claims decreased by 2,000 to 231,000. However, economists polled by Bloomberg predicted the reading to decrease by 3,000 to 230,000.
Data from the labor department showed the four-week moving average increased by 7,250 from the previous week while the number of Americans collecting unemployment fell to 1,328,000 from 1,331,000. That figure has been close to a 50-year low for months.
Although this level of unemployment is almost at a five-month high, the claims are only slightly above pre-COVID numbers. This level shows that the job market is still competitive despite record-high inflation.
Many economists believe unemployment will stay below 4.0% for the rest of the year. Last month the economy created 390,000 new jobs, and the unemployment level came to around 3.6%. The U.S. Labor Department’s monthly employment report for June will be released next week on Friday, July 8.
The Bureau of Economic Analysis announced on June 29 that the American economy diminished at an annualized rate of 1.6% in the first quarter of 2022, which is more significant than previously reported. This occurred as Americans have been struggling with skyrocketing food, rent, and gas costs, with consumer prices at 8.6%, the quickest rate since 1981. According to Comerica Wealth Management Chief Investment Officer John Lynch, a recession is hovering, “yet we find this difficult to reconcile for 2022 given full employment in the U.S.”
