Initial jobless claims in the US rose by 7,000 from the previous week to 226,000 in the last week of July, firmly above market expectations of a softer increase to 221,000. In turn, outstanding jobless claims soared by 38,000 to 1,974,000 on the previous week, well above market expectations of 1,950,000 to mark the highest level of unemployment since November 2021. The results consolidated the view of a sharp slowdown in hiring and a softening labor market, although initial claims remain below the more elevated levels of early June. Initial claims filed by federal government employees, which have been under scrutiny following recent dismissals by the Department of Government Efficiency (DOGE), fell by 14 from the four-month high in the earlier week to 708, the highest in four months.