US weekly unemployment claims tick up to 199,000 as layoffs stay low

According to the Labor Department, weekly applications for unemployment benefits climbed by 1,000 to reach 199,000 for the week ending Aug. 1, following a prior-week adjustment that raised the figure to 198,000. These filings, a near-real-time gauge of layoffs, remain within the historically modest range observed since the pandemic recession. The Federal Reserve’s preferred inflation metric, the personal consumption expenditures index, recorded a June rate of 3.7%, still above the central bank’s 2% goal and a factor that could prompt additional rate increases.

In June, employers added only 57,000 jobs, less than half of May’s total, reflecting cautious hiring amid higher borrowing costs. The unemployment rate slipped to 4.2% from 4.3%, largely because some unemployed individuals stopped searching for work. Recent workforce reductions have been reported at firms including Verizon, UPS, Amazon, Disney, Starbucks, Walmart and Microsoft. The four-week moving average of claims fell to 198,750, and total filings for the week ending July 25 stood at 1.8 million.