Jobless Claims Reach Highest Level Since November 2021: Is This A Stark Warning For The US Economy?

The US Department of Labor announced that for the week ending on July 9, 244,000 new jobless claims were filed. This is an increase of 9,000 claims from the previous week’s figure of 235,000 claims. 

The 4 week moving average has now increased to 235,750 which is an increase of 3,250 from the previous week.

This week's figure is the highest jobless claims report since November 2021. 

Many analysts took to Twitter, Inc. TWTR to share their opinion on this week's filing.

Charles Schwab Corporation SCHW Chief Fixed Income Strategist, Kathy Jones tweeted: “Initial jobless claims continue to rise off of the March low - a sign that the "tight" labor market is loosening”. 

Mark Reipe, head of the Charles Schwab Center for Financial Research, tweeted: “Last Friday’s jobs report was strong, but that is a backward-looking view. Today’s initial jobless claims report is a leading indicator, and it continues to tick upward.”

“The number of Americans filing new claims for unemployment benefits increased to an eight-month high last week, suggesting some cooling in the labor market amid rising interest rates and tighter financial conditions,” Reuters wrote this morning.

Overall, it seems that last week's reporting wasn’t concerning for analysts but as the amount of claims continues to climb, people are getting worried about the future of the economy and job market.

Also Read: New Unemployment Claims Hit 6-Month High: What You Need To Know

Photo: Courtesy of Unsplash.