The U.S. is in the midst of a strange economic landscape – high inflation and slowing growth paired with a robust labor market. Evidence of cracks in the jobs market are hard to find but recently many have been pointing to initial unemployment claims. In July, initial jobless claims – a proxy for layoffs – have been steadily ticking up.
For the week ending August 6, seasonally adjusted initial claims were up by 14,000, to 262,000. The previous week’s seasonally adjusted numbers were revised down from 260,000 to 242,000. Economist Mark Zandi noted that seasonally unadjusted UI claims have