Jobless claims rose by the most in three months last week, pointing to ongoing labor market weakness as continuing claims reached the highest level in nearly four years, according to Reuters. The Labor Department reported that initial filings increased by 11,000 to 235,000 for the week ended August 16th, surpassing forecasts of 225,000. Economists noted the rise signals limited deterioration but expect August nonfarm payrolls to show subdued growth. Continuing claims climbed by 30,000 to 1.97 million, consistent with the unemployment rate edging up to 4.3%. While tariffs have weighed on hiring and demand, other data showed business activity picked up in August, with manufacturing PMI rising to its highest level since 2022. The mixed signals pressure the Federal Reserve ahead of its September meeting, where a quarter-point rate cut is expected to support the job market.
