Unemployment demands are rising to their highest level since January; planned layoffs increase; the trade deficit will reach a low in 2022

A Wendy’s restaurant displays a “Now Hiring” sign in Tampa, Florida, June 1, 2021.

Octavio Jones | Reuters

Weekly unemployment claims rose as the US trade deficit reached its lowest level in May as Covid-related shutdowns hit China, according to economic data released on Thursday.

The first applications for unemployment benefits were 235,000 for the week ending July 2, a gain of 4,000 from the previous period and slightly more than the Dow Jones estimate of 230,000, according to the Ministry of Labor. The total was the highest since 1[ads1]5 January, raising the four-week moving average to 232,500, the highest level since December 2021.

Continued claims, which are one week behind, also rose, rising 51,000 to 1.375 million, higher than the 1.337 million FactSet estimate.

Also on Thursday, the employment agency Challenger, Gray & Christmas reported that planned redundancies rose in June to 32,517, a jump of 57% from a month ago and the highest number since February 2021.

The company noted that the automotive sector, which typically shuts down this time of year, announced 10,198 cuts, bringing the annual total to 15,578, or an increase of 155% from the same period in 2021. Of the 30 industries the company follows, 10 have announced more cuts this year than in 2021.

Notice of termination has skyrocketed in the second quarter after an extremely low level of cuts in the first three months of the year. Through June, the annual total of 133,211 is down 37% from a year ago, but the second quarter is the highest quarterly sum since the first quarter of 2021.

“Employers are beginning to respond to financial pressures and curb demand by cutting costs,” said Andrew Challenger, the company’s senior vice president. “While the labor market remains tight, this tightness may begin to ease in the coming months.”

Markets are looking at Friday’s report for non-farm wages, which is expected to show a gain of 250,000. If the Dow Jones estimate turns out to be accurate, it will be the lowest monthly increase since December 2020. Federal Reserve officials are watching closely on job numbers as they look to cool the labor market and the wider economy, which see their highest inflation rate since 1981.

On the trade front, the US imbalance in goods and services fell to $ 85.5 billion, from $ 86.7 billion in April, according to government figures. Although it was the lowest in 2022, it was above the Dow Jones estimate of $ 84.7 billion.

The deficit was still up 38.4% from a year ago as demand for imports has far exceeded US exports to the rest of the world.

While China struggled with an increase in Covid infections, the US trade deficit with this country fell by a seasonally adjusted $ 2.8 billion to $ 32.2 billion. The deficit with Mexico fell $ 1.6 billion while the imbalance with Canada increased $ 900 million.

Source link

Back to top button

mahjong slot