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The numbers: The number of Americans who applied for unemployment benefits last week rose slightly last week to 227,000 after falling to a five-month low, offering more evidence that layoffs are low and the labor market remains robust.
New jobless claims rose by 6,000 from a revised 221,000, the government said. The prior week’s reading was the lowest since February.
Unemployment claims typically rise when the economy weakens and a recession approaches.
Claims have bounced above a historic bottom, but they still show a low number of layoffs taking place in a surprisingly resilient U.S. economy.
Key details: New jobless claims fell in 32 of the 53 states and territories that report these figures to the federal government.
The other 21 posted higher claims, but most of the increases were small.
Jobless claims are often choppy in July due to the end of the school year, the July 4 holiday and annual shutdowns of automobile plants to retool for new models.
The number of people collecting unemployment benefits in the U.S., meanwhile, rose by 21,000 to a still-low 1.7 million. Most laid-off workers appear to be finding new jobs relatively quickly.
Big picture: A steady increase in new U.S. jobs and paucity of layoffs has given hope to Federal Reserve officials that they can slow inflation without tipping the economy into recession. That’s what usually happens when the Fed raises interest rates to contain inflation.
As long as most people are working, they are likely to spend enough money to keep the economy in expansion mode.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Thursday trades.
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