US Continuing Jobless Claims Increase for a Ninth Straight Week

(Bloomberg) -- Recurring applications for US jobless benefits rose for a ninth straight week in the longest stretch since 2018, indicating a growing number of people are having difficulty finding a new job.

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Continuing claims, a proxy for the number of people receiving benefits, increased to 1.86 million in the week ended June 22, the highest since November 2021, according to Labor Department data released Wednesday. First-time claims rose by 4,000 to 238,000 last week.

The level of recurring jobless claims points to more limited demand for labor as the economy slows under the weight of higher borrowing costs. At the same time, the number of initial applications indicates a gradual pickup in dismissals.

The monthly employment report on Friday is projected to show a 190,000 increase in June payrolls, representing a modest downshift in hiring after a 272,000 advance in the prior month.

There are scattered signs that companies are paring headcounts due to cost-cutting and softer economic conditions. US-based employers announced 48,786 job cuts in June, according to Challenger, Gray & Christmas Inc. Excluding 2020, the height of the pandemic, that’s the highest number of job-cut announcements for any June since 2009.

Weekly claims data tend to be volatile, especially around holidays. The four-week moving average of initial applications, which smooths short-term fluctuations, increased to 238,500 — the highest since August.

Initial claims before adjustment for seasonal influences increased by about 13,000 to 238,149. New York, New Jersey and California showed the largest increases.

--With assistance from Mark Niquette and Matthew Boesler.

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