US jobless claims rise, layoffs low

Weekly U.S. jobless claims rose to 199,000 for the week ending August 1, up 1,000 from the prior week's revised 198,000, according to the Labor Department. Despite the increase, layoffs remain historically low, with claims hovering near the lowest levels in decades. The four-week moving average fell to 198,750. The report comes amid a mixed economic backdrop: inflation as measured by the PCE index stands at 3.7%, well above the United States — Federal Reserve's 2% target, and the Fed has signaled readiness to raise interest rates if price pressures persist. Economic growth slowed to 1.5% in Q2, and June job gains were a tepid 57,000. The labor market has been resilient despite the U.S.-Iran conflict and elevated oil prices, though analysts warn that prolonged war and high energy costs could eventually weigh on hiring. Several major companies, including Verizon, United Parcel Service, Amazon (company), Disney, Starbucks, Walmart, and Microsoft, have recently trimmed their workforces.