Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 at the end of July.

In the week ending July 26, 1.974 million continuing claims were filed, up from 1.936 million the week prior and the highest level seen since November 2021, according to data from the Department of Labor released Thursday morning. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.

Meanwhile, weekly filings for unemployment benefits increased to 226,000 in the week ending Aug. 2, up from 221,000 the week prior. Oxford Economics lead economist Nancy Vanden Houten wrote in a note following the release that the level of weekly jobless claims is “consistent with a low pace of layoffs.”

Thursday’s data comes less than a week after the July jobs report showed hiring in the US labor market has slowed more than initially expected. The July jobs report showed the US economy added 73,000 jobs while the unemployment rate moved higher to 4.2%.

But the portion of the release that sent markets stumbling was “larger than normal” revisions to previous reports, according to the Bureau of Labor Statistics. Changes to May’s and June’s reports showed more than a quarter million fewer jobs were added to the economy over those months. May’s job gains were revised down to 19,000 from 144,000, while June’s additions were cut to just 14,000 from the 147,000 initially reported.

“The rise in continued claims since April — a sign that unemployed persons are finding it tough to find new jobs — makes even more sense after the sharp downward revisions to job growth in May and June,” Vanden Houten wrote Thursday.

Following recent labor market data, the probability of a September interest rate cut from the Fed has surged to 91%, up from just 38% a week prior, per the CME FedWatch Tool.

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