The latest data from the Labor Department shows that initial jobless claims hit their highest level in over a year last week.
There were 251,000 claims for the week of July 16th, up 7,000 from the week before and above the 240,000 estimate.
It was the highest weekly level of unemployment insurance in over a year and another sign that the jobs market is cooling this year.
The continuing claims increased to 1.384 million, the highest total since April 23.
There was some weakness in the jobs picture.
The Philadelphia Fed manufacturing index fell to a reading of -12.3 from a reading of 9 a week ago and a worse level than the 1.6 that the average person would expect. The difference between expansion and contraction is represented by the number.
The employment index fell by 9 points. It's indicative that hiring is slowing and it's the lowest reading since May 2021. Productivity could be declining as the average work week reading fell for the fourth month in a row.
78.6% of companies in the survey said they have increased wages and compensation in the last three months, while no respondents said they had cut wages.
Inflation pressures are still high but cooling. The prices received and prices paid both fell from a month ago but remained high with respective readings of 52.2 and 30.3.
There is a lot of uncertainty about the direction of the economy.
Nonfarm payroll gains have averaged 457,000 a month through the first half of the year and employment has been the main bright spot. The last three months have seen an average increase of 375,000.
The U.S. could be in the midst of a recession with two straight quarters of negative growth. According to the Atlanta Federal Reserve, the gross domestic product fell 1.6% in the first quarter.
The Fed is expected to raise interest rates by 0.75 percentage point next week. The Fed wants to slow the economy that has produced the highest inflation rate in 30 years.
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