Wednesday, July 2, 2025

US Initial Jobless Claims Unexpectedly Exceed Forecasts

US initial jobless claims surprisingly jumped by more than expected last week, despite optimistic sentiment that the country’s labour market is slated for a strong comeback heading into the fall season.

According to the Department of Labour, first-time applications for unemployment benefits jumped by 51,000 to 419,000 last week, marking the highest total since late March. Economists surveyed by Bloomberg forecast a total of 350,000 applications. The latest figures sent government bond yields lower, while stock market futures slumped from their morning highs.

On the other hand, continuing claims, which are one week behind the headline figures, fell by 29,000 to 3.24 million for the week ending on July 10, marking the lowest total since March 14, 2020. However, when analyzed at the state level, the number of continuing claims for state unemployment benefits deviated significantly across states that phased out their benefit programs ahead of September’s statutory expiration.

In short, Americans have been returning to work in states where government dole is no longer paying them to sit on the couch, while initial and continuing claims continue to rise across states that are clinging onto the September deadline.

With that, lets consider the following scenario: once the federal government’s generous unemployment benefits completely run dry, and millions of Americans are forced to re-enter the labour market, what will become of theirs, and everyone else’s wages, as companies’ gross profit continues to be eroded away by skyrocketing inflation? Stagflation, anyone?

Information for this briefing was found via the DOL and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

US Loses Another 2.4M Jobs; Over 38M Claims in Just 9 Weeks

This morning the Department of Labor released initial jobless claims for the week ended May...

Thursday, May 21, 2020, 09:57:40 AM

US Jobless Claims on the Rise Again Amid Continued Labour Market Weakening

As coronavirus cases continue to soar across the US prompting many states to reimpose restrictions,...

Thursday, December 10, 2020, 12:09:00 PM

US Jobless Claims Unexpectedly Increase From Pandemic-Low

First-time applications for unemployment benefits unexpectedly rose last week, as fears over the new Omicron...

Friday, December 17, 2021, 10:20:00 AM

US Hits Another 5.2M Jobless Claims

This morning the Department of Labor announced the Initial Jobless Claims for the week ended...

Thursday, April 16, 2020, 10:06:17 AM

US Initial Jobless Claims Unexpectedly Rise for Two Consecutive Weeks

Despite showing signs of a decline just two weeks ago, the number of Americans filing...

Thursday, April 8, 2021, 02:39:00 PM