BlockBeats report: On July 30, the number of first-time applications for unemployment benefits in the U.S. last week rose less than expected, indicating that the labor market remains stable. The U.S. Department of Labor announced on Thursday that, for the week ending July 25, initial state unemployment claims increased by 9,000 to a seasonally adjusted total of 197,000, below economists’ forecast of 200,000.
This week's increase in claims partially offset last week's decline, which had reached the lowest level since 1969. Initial jobless claims in July are typically volatile, as automakers usually shut down for annual maintenance and equipment upgrades. However, this year General Motors kept most of its assembly plants operating, while Ford canceled its traditional summer shutdown at truck plants. This may have disrupted the government’s statistical models used to adjust for seasonal fluctuations. Economists say the U.S. labor market remains in a state of “hiring slowing, layoffs slowing.”