US Initial Jobless Claims Rise Less Than Expected Last Week

The U.S. Department of Labor reported that for the week ending July 25, initial jobless claims increased by 9,000, with a seasonally adjusted total of 197,000, which is below economists' expectations of 200,000. This increase partially offsets the decline from the previous week, which recorded the lowest level since 1969. Initial jobless claims data in July tends to be volatile, as automakers typically shut down for maintenance and retooling during this time. This year, General Motors has kept most of its assembly plants running normally, while Ford has canceled summer shutdown plans for its truck plants, which may affect the government's seasonal adjustment statistics. Economists note that the U.S. labor market remains in a state of slowing hiring and layoffs.