Initial claims for state unemployment benefits rose 6,000 to a seasonally adjusted 260,000 for the week ended July 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast 259,000 applications for the latest week.
The economy contracted 1.3% in the first half, meeting the standard definition of a recession. But with the labor market still churning out jobs at a brisk clip and layoffs low, the economy is not in recession, though overall momentum has cooled. Wild swings in inventories and the trade deficit tied to snarled global supply chains have been largely to blame for the two straight quarterly declines in gross domestic product.
So far this year, employers have announced 159,021 layoffs down 31.3% from the same period last year and the fewest in January-July since 1993.