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US filings for jobless benefits rise to 199,000 last week, but layoffs remain historically low
AP News • • business
Key Points:
- Initial jobless claims in the U.S. rose slightly by 1,000 to 199,000 for the week ending August 1, remaining within a historically healthy range for layoffs.
- The Labor Department's four-week moving average of claims decreased by 4,500 to 198,750, indicating some stability amid weekly fluctuations.
- Inflation remains elevated at 3.7% for June, above the Federal Reserve's 2% target, prompting potential interest rate hikes that could impact hiring and business costs.
- June saw a significant slowdown in job growth with only 57,000 jobs added, reflecting employer caution despite a low unemployment rate of 4.2%, partly due to discouraged workers exiting the labor force.
- Major companies like Verizon, UPS, Amazon, Disney, Starbucks, Walmart, and Microsoft have recently reduced their workforces amid ongoing economic uncertainties.
