Data from the US Department of Labor showed the continued strength of the labor market, after the number of new applicants for unemployment benefits fell last week to levels lower than analysts expected.
The ministry said on Thursday that initial applications for unemployment benefits fell by 8,000 applications to reach 208,000 applications during the week ending July 11, after adjusting in light of seasonal factors, compared to economists’ expectations, which suggested recording 217,000 applications.
This decline comes after a noticeable increase in aid requests in late May, before stabilizing at relatively high levels until mid-June. Economists believe that the current numbers reflect a labor market characterized by slow hiring and slow layoffs at the same time.
A survey conducted by the National Federation of Independent Business also shed light on the continuing labor shortage, as it showed a high percentage of small business owners who confirmed that there were a limited number or no qualified applicants for available positions during June.
In the same context, the number of beneficiaries of ongoing unemployment benefits, an indicator that reflects the pace of employment, decreased by 16 thousand people to 1.805 million beneficiaries during the week ending July 4, after seasonal adjustment.
These data indicate that the American labor market still maintains a degree of stability despite the slowdown in economic activity and the decline in the pace of employment compared to previous years.
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