US: Unemployment aid applications rise

The number of Americans who applied for jobless aid last week rose to its highest level since November, although the labor market in the country continues to show signs of strength.

Jobless claims rose 14,000 to 262,000 and have now risen in five of the past six weeks, the Labor Department reported Thursday.

The four-week average number of applications, which strips out week-to-week volatilities, rose 4,500 to 252,000, also the highest level since November.

The number of people in the United States receiving unemployment payments rose by 8,000 in the week ending July 30, to 1.43 million, the highest since early April. The aid applications are seen as a reflection of layoffs and often seen as an early indicator of where the job market is headed.

So far this year, US hiring has been remarkably strong and resilient in the face of rising interest rates and weak economic growth.

Last week, the Labor Department reported that companies in the country added 528,000 in July, more than double the forecast.

The unemployment rate fell to 3.5% in July, matching a 50-year low reached just before the outbreak of the pandemic battered the US economy in early 2020. The United States rebounded with unexpected force from the recession caused by COVID-19, leaving businesses hard-pressed to get enough workers.

But the economy continues to face challenges. Consumer prices have continued to rise — 8.5% in July from a year earlier — although down slightly from June’s 9.1%, the highest level in 40 years. The Federal Reserve has raised its main short-term interest rate four times this year.

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