U.S. Labor Market Teeters Amid Tariff Worries and Immigration Crackdown
The number of unemployment benefit applications in the U.S. reached a monthly high, signaling a stable labor market despite declining job creation. Initial claims rose by 7,000 to 226,000, surpassing forecasts. Meanwhile, productivity surged in Q2, alleviating labor costs after Q1's decline amid political uncertainty.
Last week, the number of Americans submitting new applications for unemployment benefits rose to its highest point in a month, hinting at a largely stable labor market despite a noted slowdown in job creation. Data from the Labor Department revealed an increase of 7,000 claims, with the total reaching 226,000, surpassing economist forecasts.
Amid an economic landscape fraught with uncertainty over tariffs imposed by President Donald Trump, businesses remain hesitant to expand their workforce. This caution has led to fewer job opportunities for laid-off workers, although large-scale layoffs are not yet prevalent.
In positive news, worker productivity saw a notable uptick in the second quarter, with a 2.4% increase, just slightly above expectations. This rebound helped mitigate the rise in labor costs experienced earlier in the year.
(With inputs from agencies.)
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