Jobless claims rise less than expected to 233,000
Piper Sandler chief global economist Nancy Lazar discusses whether the U.S. economy is as strong as earnings suggest on 'Making Money.'
The number of Americans filing for unemployment benefits rose less than expected last week, potentially easing some concerns about the health of the labor market following the disappointing July jobs report.
Figures released Thursday by the Labor Department show initial claims for the week ended Aug. 3 fell by 17,000 to 233,000, below the 240,000 estimate by LSEG economists. However, that remains higher than the 2019 pre-pandemic average of 218,000 claims.
Continuing claims, filed by Americans who are consecutively receiving unemployment benefits, hit 1.87 million for the week ended July 27, up 6,000 from the previous week. It marks the highest level for continuing claims since November 2021.
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Jobseekers attend a job fair at the Amerant Bank Arena on June 26, 2024, in Sunrise, Florida. (Photo by Joe Raedle/Getty Images)
«Investors have to be careful not to read too much into one report like they did recently with the last payroll report,» said Jeffrey Roach, chief economist at LPL Financial. «A holistic interpretation of the labor market is hiring will likely slow throughout the rest of the year, putting some downside risk to income growth.»
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The report comes with Wall Street on edge after a global market sell-off, triggered by the worse-than-expected payroll data released last week. The report showed the economy added just 114,000 workers last month, while the unemployment rate jumped to 4.3%, the highest level since October 2021.
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