Overview
- Initial claims for state unemployment benefits rose by 9,000 to a seasonally adjusted 197,000 for the week ended July 25, a smaller increase than economists had forecast.
- The number of people on continuing unemployment benefits fell by 7,000 to 1.782 million for the week ended July 18, a drop that economists view as a modest sign of ongoing hiring.
- The Federal Reserve left its policy rate at 3.50%–3.75% on Wednesday while three policymakers preferred a quarter-point increase, reflecting concern about labor-market strength.
- July data may be distorted because General Motors and Ford changed traditional plant shutdowns, which can confuse the government's seasonal adjustment model and make weekly claims volatile.
- Consumer views of job availability weakened in July to their weakest level since February 2021 and the June unemployment rate fell to 4.2% largely because people left the labor force, signaling mixed signals for workers searching for jobs.