The number of Americans applying for unemployment benefits unexpectedly rose by 20,000 to 243,000 last week, with claims in Texas spiking after Hurricane Beryl. Jobless claims are still relatively low by historical standards but have increased somewhat in recent months, signaling a cooling labor market.
Key Points
Unemployment claims rose by 20,000 to 243,000 last week
Claims in Texas increased after Hurricane Beryl
Jobless claims are a proxy for layoffs and have climbed in recent months
The four-week moving average of claims is at 234,750
Continuing claims rose by 20,000 to 1,867,000
Pros
Provides insight into the current state of the labor market
Can help policymakers make decisions regarding economic support
Cons
Higher unemployment claims indicate potential job losses and economic challenges