WASHINGTON (Reuters) -The number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions.
Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 237,000 for the week ended August 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week.
Job growth has shifted into stall-speed, with economists blaming President Donald Trump’s sweeping import tariffs and an immigration crackdown that is hampering hiring at construction sites and restaurants.
The government reported on Wednesday that there were more unemployed people than positions available in July for the first time since the COVID-19 pandemic. The Federal Reserve’s “Beige Book” report on Wednesday also noted that “firms were hesitant to hire workers because of weaker demand or uncertainty.”
The number of people receiving benefits after an initial week of aid slipped 4,000 to 1.940 million during the week ending August 23, the claims report showed.
The claims data have no bearing on the closely watched employment report for August scheduled to be released on Friday as they fall outside the survey period.
A Reuters survey of economists expects the employment report will likely show nonfarm payrolls increased by 75,000 jobs in August after rising by 73,000 in July.
Employment gains averaged 35,000 jobs per month over the last three months compared to 123,000 during the same period in 2024, the government reported in August. The unemployment rate is forecast to climb to 4.3% from 4.2% in July.
Federal Reserve Chair Jerome Powell last month signaled a possible rate cut at the U.S. central bank’s September 16-17 policy meeting, acknowledging the rising labor market risks, but also added that inflation remained a threat.
The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
Comments