The number of new US jobless claims decreased by 3,000 to 224,000 during the last week indicating that layoffs continue at a low level despite hiring reductions. The Labor Department released data which showed that economists predicted 228,000 claims but the actual number was 224,000.
The number of continuing claims which serves as a hiring indicator decreased to 1.95 million yet remains high because consumer surveys indicate job availability has decreased. The unemployment rate is projected to rise to 4.3% during August from its current 4.2% level.
The current employment growth rate stands at 35,000 per month during the last quarter which represents the lowest level since late 2022 because businesses avoid expansion due to Trump-era tariffs that have increased average import duties to their highest point in a century.
The markets continue to predict Federal Reserve rate cuts for the upcoming month but services inflation persistence might reduce the determination of policymakers.
