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PNC Senior Economic Advisor Stuart Hoffman: Unemployment Rate is Close to a Low at 3.5 Percent,

Michigan Business Network
August 11, 2022 1:00 PM

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Matching its Pre-Pandemic Low Point

Initial claims for unemployment insurance rose by 14,000 to 262,000 in the week ending August 6 from a downward revised 248,000 in the week ending July 30. The four-week moving average of initial claims, which smooths out some of the volatility, moved up 5,000 to 252,000 in the week ending August 6 from a downward revised 247,000 in the previous week. It hit a low of 172K in early April. The insured unemployment rate held steady at a very low 1.0 percent in the week ending July 30. 

The total number of people receiving benefits under regular state unemployment insurance programs (continuing claims) rose by 8,000 to 1.428 million in the week ending July 30. The four-week moving average of continuing claims jumped by 24,000 to 1.399 million. Continuing claims have moved higher in the past ten weeks but are still close to decades-long lows as unemployed workers leave the program’s rolls, either because their benefits have expired or because they have quickly found a new job. 

The labor market remains in good shape as the summer quarter progresses as evidenced by the strong 528K rise in July payroll jobs. The jobs market was as hot as the weather last month! However, the rise in initial claims since early April is a cool breeze blowing at the hot labor market this summer. The recent rise in initial claims to 252K in the four weeks ending August 6 (from a low of 172K in early-April), and the rise in continuing claims to 1.399 million in the four weeks ending July 30 (from a low of 1.314 million in early June) are a clear sign that layoffs are happening at a growing number of companies and the unemployment rate is close to a low at 3.5 percent, matching its pre-pandemic low point.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

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Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.