Jobless claims tick higher as layoffs rise

New applications for jobless benefits ticked higher during the final week of July, according to data released Thursday by the Labor Department. In the week ending July 30, initial claims for unemployment insurance rose to 260,000, up by 6,000 from the previous week.

While claims still remain near pre-pandemic lows, they've risen to the highest level since November as the job market slows down. The steady rise in jobless claims comes as businesses feel the squeeze of high inflation and interest rate hikes meant to slow down price and wage growth. As the Federal Reserve hikes interest rates, businesses tend to hire fewer employees and avoid offering higher wages.

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