The number of Americans applying for new requests for unemployed unemployed subsidies last week, indicating that employers are still holding employees, despite other indicators indicating a slowdown in the labor market.
The US Department of Labor announced on Thursday that the initial requests for the receipt of state subsidies for unemployment fell by 5 thousand requests, up to 227 thousand requests after a seasonal amendment, within a week ending on July 4. Economists, Reuters, applied for their opinions, expected requests for 235,000 requests.
It should be noted that last week data was included on July 4, a period that usually indicates seasonal fluctuations in the numbers of claims.
Despite the decrease in requests, the economists and governors of the “Federal Reserve System” see that the labor market is still relatively solid, despite some of the slowdown indicators. This assessment strengthens the monthly work report, released last week, which showed a decrease in unemployment level to 4.1 percent, mainly due to the work of the workforce, in addition to the addition of 147 thousand jobs, which exceeded expectations, but it was concentrated in limited sectors.
The President of the Federal Reserve System, Jerome Powell, noted that the current performance and demobilization indicators do not imply a direct risk, but he warned that any sudden increase in dismissal can push the unemployment rate rapidly – which has not yet happened, despite the announcement of 100 American companies, including Microsoft and Intel, this month, workers.
Economists believe that a commercial policy based on trade is pursued by President Donald Trump, adds a layer of riddle, which complicates the development of companies that negatively reflect the dynamics of employment.
The recent report on work showed that the average unemployment period increased in June to 10.1 weeks, compared with 9.5 weeks in May, which indicates the complexity of the unemployed findings of new jobs.
The report of the Ministry of Labor, published on Thursday, showed that the number of people who receive unemployment subsidies after the first week is an important indicator of the durability of the labor market was increased by 10 thousand, reaching 1.965 million people in a week ending on June 28, which is the highest level since November 2021.
Last week, the federal reserve system decided to maintain the main interest rate without changes, in the range from 4.25 to 4.50 percent, which is the level adopted from December, in anticipation of more indicators about whether customs duties can re -inflationary pressure before deciding on reducing interest.
