Weekly jobless claims in the United States rose much more than expected last week

Unexpected weekly jobless claims rose last week despite hopes that the US labor market is poised for a strong recovery as fall approaches.

Initial unemployment insurance claims totaled 419,000 for the week ended July 17, well above the Dow Jones’ 350,000 estimate and more than the revised upward 368,000 from the previous period, reported Thursday the Labor Department.

The news caused stock market futures to drop from their morning highs, with Wall Street pointing to a flat open.

The total was the highest weekly tally since May 15 and comes as the employment situation is expected to improve markedly as the increase in unemployment benefits ends and companies are becoming more aggressive in filling vacancies.

On the bright side, continuing claims, which are a week behind the overall count, have fallen from 126,000 to 3.24 million, a new pandemic low. The total was last highest on March 14, 2020, just after the declaration of the Covid-19 pandemic and as US governments ordered businesses to close, sending more than 22 million people out of work .

This is last minute news. Please come back here for updates.

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