The US job market is flashing red lights! The number of initial jobless claims has increased for nine consecutive weeks, reaching the highest level since November 2021
The number of initial jobless claims in the United States has risen for the ninth consecutive week, reaching the highest level since 2018. This reflects a tightening job market and a decrease in job opportunities. The data on initial jobless claims fluctuates significantly due to factors such as holidays, but the moving average of initial claims has increased to the highest level since August last year. In addition, the June ADP report in the United States shows a cooling job market, with the unemployment rate rising to the highest level in over two years. The number of unemployed individuals reapplying for benefits has increased again, indicating that unemployed Americans need more time to find work. There are also sporadic signs of corporate layoffs
According to the latest data released by the Department of Labor, the number of initial jobless claims in the United States has been rising for the ninth consecutive week, reflecting a tightening job market and a decrease in job opportunities. As of the week ending June 22, the number of continuing claims for unemployment benefits has increased to 1.86 million, the highest level since November 2021. The number of initial claims for unemployment benefits increased by 4,000 last week to 238,000.
This upward trend indicates a weakening demand in the labor market amidst rising borrowing costs and economic slowdown, with layoffs gradually increasing. The four-week moving average of initial claims has risen to 238,500, the highest level since August last year. Additionally, the seasonally unadjusted initial claims increased by about 13,000 to 238,000, with significant increases in New York, New Jersey, and California.
Earlier tonight, the June ADP report in the United States further indicated a gradual cooling of the job market, with the unemployment rate rising to 4% in May, the highest level in over two years. The number of repeat unemployment claims has also increased, suggesting that unemployed Americans are taking longer to find jobs. Federal Reserve Chairman Powell stated yesterday that there has been "substantial" progress in balancing labor supply and demand. There are sporadic signs that companies are laying off workers due to cost-cutting and a softening economy. In June, the pace of hiring by U.S. companies was more moderate, wage growth slowed, aligning with the gradual cooling of labor demand.
Furthermore, according to data from Challenger, Gray & Christmas Inc., U.S. employers announced 48,786 job cuts in June, the highest number since 2009, excluding the severe pandemic year of 2020. Non-farm payrolls will be released on Friday, providing further insights into the labor market. Market expectations suggest that job growth in the U.S. in June will slow to 190,000, down from 272,000 the previous month. Some companies have already begun layoffs due to cost-cutting and economic weakness.
Overall, these data points paint a picture of a gradually slowing job market, hinting at more challenges facing the U.S. economy. With slowing job growth and increasing layoffs, policymakers and business leaders need to closely monitor these trends and consider taking appropriate measures to support the labor market and overall economy's health