New jobless claims saw another unexpected spike last week.
The most recent Department of Labor data revealed 419,000 claims for the week ending on July 17 — an increase in 51,000 from the previous week’s levels that again exceeds economists’ predictions.
The Wall Street Journal explained:
The number of Americans receiving jobless payments fell this month to the lowest level since early in the coronavirus pandemic, but first-time applications rose as supply constraints persist in the auto industry.
Continuing payments made through all unemployment benefit programs fell by 1.3 million in the week ended July 3, to 12.6 million, the Labor Department said Thursday. That was the lowest level since late March 2020, when new programs responding to the pandemic first came online.
In recent weeks about half of states have acted to end enhanced and extended unemployment benefits. The end of pandemic programs in Texas drove the latest decrease.
“The expectation is that this will spur more job-seeking among unemployed Texans as demand for