Overview

• Initial claims for state unemployment benefits rose by 7,000 to 226,000 for the week ending August 2, exceeding economists’ forecasts of about 221,000.
• Continuing claims climbed to 1.974 million as businesses cite uncertainty over President Trump’s tariffs and stricter immigration measures for hesitating to add staff.
• July payroll gains fell well short of expectations and downward revisions erased a cumulative 260,000 jobs from May and June estimates.
• President Trump dismissed the Bureau of Labor Statistics chief after the substantial data revisions, raising concerns among investors and policymakers about the reliability of labor statistics.
• Worker productivity rebounded in the second quarter, easing earlier labor cost pressures despite a slowdown in job creation.