Several signs that the jobs market could be cracking have emerged in recent days, although the S&P 500 (SPX) continues to chug forward with little concern. For the week ended August 2, new applications for unemployment benefits totaled 226,000, above the estimate of 221,000 and up from 219,000 during the prior week.
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In addition, continuing jobless claims for the week ended July 26 increased by 38,000 to 1.974 million, above the estimate of 1.95 million. That marks the highest level since November 2021. For context, continuing jobless claims data lags initial jobless claims data by one week.
Data Points to Labor Market Weakness
July’s nonfarm payrolls (NFP) report, which was published last week, showed 73,000 new jobs, well below the estimate for 104,000 additions. On top of that, the Bureau of Labor Statistics (BLS) announced a downward revision of 258,000 jobs for May and June, which the agency described as “larger than normal.”
Shortly after, President Trump announced that he would immediately fire BLS Commissioner Dr. Erika McEntarfer, accusing her of swaying the NFP numbers based on political biases.
Track the continuing jobless claims report and other key events with TipRanks’ Economic Calendar.
