The latest data from the Labor Department indicates that Americans are staying unemployed for longer periods, reflecting a slowing economy. The number of people receiving jobless benefits for multiple weeks reached its highest level since November 2021, with continuing claims increasing to more than 1.8 million for the week ending June 15, suggesting that unemployed individuals are finding it more challenging to secure new jobs.
Despite this, there was a slight decrease in initial unemployment claims, with 233,000 new claims filed for the week ending June 22, down from the previous week’s revised level of 239,000. However, initial claims have been trending higher in recent weeks, and the four-week average of 236,000 claims is the highest since early September last year. These figures are near pre-pandemic levels but still below historical averages.
Indicators such as job cuts reports and mass layoff notices suggest that initial claims could continue to rise through the summer. Economist Ian Shepherdson from Pantheon Macroeconomics notes that while no single indicator points to a dramatic increase in claims, struggling firms often cut hiring before resorting to layoffs. This trend, along with other hiring indicators, suggests a significant slowing in job growth over the next three months, potentially falling below 100,000 new jobs.
