Initial jobless claims unexpectedly edged higher last week in a potential sign the labor market may be moderating amid tighter financial conditions. The print comes ahead of the government's monthly employment report for June due out Friday.
First-time filings for unemployment insurance in the U.S. totaled 235,000 for the week ended July 2, increasing by 4,000 from the prior week's reading of 231,000 claims, the Department of Labor said Thursday. Economists surveyed by Bloomberg had expected the latest reading to come in at 230,000.
This marked the highest weekly total since the week ended January 15, 2022.
Demand for labor is gradually cooling. A separate report from global outplacement firm Challenger, Gray & Christmas on Thursday showed layoffs announced by U.S.-based employers jumped 57% to 32,517 in June, the highest since February 2021.
Job cuts increased 39% to 77,515 in the second quarter from the January-March period. But layoffs in the first half of the year were the lowest since 1993.
"Employers are beginning to respond to financial pressures and slowing demand by cutting costs," said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. "While the labor market is still tight, that tightness may begin to ease in the next few months."
Job cuts surged in the automotive, consumer products, entertainment, financial and real estate industries.
Stock-index futures remain higher after economic data.
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