States reported that
221,000 workers filed for new
unemployment benefits during the week ending July 22, a decrease of
7,000 from last week’s unrevised level.
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. The Federal Reserve lifted interest rates to a 22-year high yesterday and estimate there will be at least one more rate hike this year. Fears of a recession are receding, especially after the Commerce Department’s announcement this morning that gross domestic product grew at a faster than expected rate during the second quarter.