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Aug. 17 (UPI) — The Labor Department reported on Thursday that first-time claims of joblessness in the U.S. economy fell slightly more than expected, although the increase in the less-volatile, four-week moving average balanced the outlook.
According to the Labor Department, initial claims for the seven-day period ending August 12 were at a seasonally adjusted 239,000, just below market expectations and 11,000 fewer than the previous week (which saw an upward revision of 500 claims).
The four-week moving average stood at 234,250, reflecting an increase of 2,750 from the previous period. Other data indicates that the number of people filing continued claims for the week ending July 29 was 1.8 million, a decline of 17,663 from the previous week but still 400,000 higher than the same period last year.
In early August, CVS Health announced it would lay off approximately 5,000 employees, mainly at the corporate level, as a cost-cutting measure. On the other hand, big-box retailer Walmart expressed optimism, anticipating a total revenue increase from $152.9 billion to $161.6 billion by the same period next year.
“We’re well-positioned for the back half of the year, with a strong inventory and favorable prospects,” stated President and CEO Doug McMillon.
While this may bode well for future job prospects, it could have a negative impact on the overall economy. Strong retail sales, even at discount chains, indicate that consumers are unaffected by persistent inflationary pressures and rising interest rates.
The Federal Reserve observed on Wednesday that payroll gains remain robust, and while job openings have declined to a two-year low, they still remain significantly higher than pre-pandemic levels. Consumer-level inflation, meanwhile, “declined but remained elevated in June,” according to the Fed’s statement.
Last month, the Fed raised its rates once again in an attempt to curb demand, and stated that another increase could be considered if the data shows signs of an overheating economy.
