States reported that 228,000 workers filed for new unemployment benefits during the week ending July 15, a decrease of 9,000 from last week’s unrevised level.
About 1.75 million workers continue to claim unemployment benefits, though economists point out that unemployment remains low by historic standards. 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. Some still expect a mild recession later this year or in early 2024, while others point to the labor market’s remarkable resilience throughout the lengthy interest rate hike campaign designed to slow it down.