US applications for jobless benefits rose last week, increasing to 235,000, but layoffs remain at historically low levels. The Labor Department reported a slight increase in new jobless claims, surpassing economists’ forecast of 229,000.
The number of jobs added by US employers in July was also lower than expected, with just 73,000 new jobs created. Revisions to previous estimates shaved 258,000 jobs off the total, leaving the unemployment rate unchanged at 4.2%.
The climbing unemployment rate in Washington D.C. is attributed to mass layoffs of federal workers and a decline in international tourism. Neighboring states Maryland and Virginia also saw an uptick in unemployment rates.
Some major companies have announced job cuts this year, including Procter & Gamble, Dow, CNN, and Starbucks. Economists attribute the uncertainty caused by Trump’s tariffs against US trading partners to the reluctance of employers to expand their payrolls.
The Labor Department reported a four-week average of claims rose 4,500 to 226,500. The total number of Americans collecting unemployment benefits jumped to 1.97 million, the most since November 6, 2021.
Source: https://abcnews.go.com/US/wireStory/us-applications-jobless-benefits-rise-week-layoffs-remain-124843092