U.S. Jobless Claims Beat Expectations, Further Evidence of Labor Market Softening

Last week, July 18, U.S. jobless claims rose the most since early May, and continuing claims rose sharply, further evidence that the labor market is softening. Continuing claims rose by 20,000 to 1.87 million in the week ending July 6, the highest level since November 2021.2 The number of people claiming unemployment benefits rose by 1.8 million in the week ending July 6, the highest level since November 2021.3 There are large weekly fluctuations in jobless claims at this stage of the year, either due to holidays such as Independence Day and the summer closure of schools.