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June 29 (UPI) — U.S. data from Thursday indicates that inflationary pressures are not severe enough to impact hiring significantly. The number of first-time claims of unemployment dropped compared to the previous week, although long-term claims continue to rise.
The Labor Department reported first-time claims of unemployment amounted to 239,000 for the seven-day period ending June 24, which is a decline of 26,000 from the previous week.
Weekly jobless claims have reached a one-month low, and more than half of U.S. states witnessed a decline in claims.
This comes amidst expectations that the Federal Reserve’s interest rate hikes could slow the economy enough to result in widespread layoffs. However, so far, the Fed’s policies have not translated into job losses.
“While the jobs-to-workers gap has decreased, there is still a significant imbalance between labor demand and the available workforce,” said Federal Reserve Chairman Jerome Powell on Thursday.
Further analysis of the data, however, may raise concerns about job prospects. The less-volatile four-week moving average has been revised upward by 1,500 from the previous week, reaching 257,000.
“This is the highest level for this average since November 13, 2021, when it stood at 260,000,” stated the Labor Department’s report.
Although federal data on jobless claims do not provide specific information on economic sectors, the tech industry has faced increased pressure this year. Parent company Meta, formerly known as Facebook, and video game company EA have both announced significant layoffs earlier in the year.
In early June, Spotify also revealed plans to cut approximately 2% of its workforce as part of a “strategic alignment,” primarily within its podcast division.
The situation is equally concerning for individuals who have been without a paycheck for consecutive weeks. The number of “continued weeks” claimed during the week ending June 10, the most recent week for which federal data is available, increased by 22,947 from the previous week, reaching 1.7 million.
“In the corresponding week of 2022, there were 1,313,892 weekly claims filed for benefits across all programs,” stated the Labor Department.
