US weekly jobless claims rise to 11-month high

Last week, new unemployment benefit applications in the U.S. reached a peak not seen in nearly a year, indicating potential softening in the labor market. Initial claims rose by 14,000 to 249,000 for the week ending July 27, surpassing economists' expectations of 236,000. This increase is attributed to temporary shutdowns and disruptions, such as Hurricane Beryl. Despite the rise in claims, layoffs remain relatively low, and planned job cuts have decreased significantly. Federal Reserve Chair Jerome Powell noted these changes align with a broader normalization process, though the Fed continues to monitor the situation closely.