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Back from the brink, Hampshire College is approaching financial viability
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Just five years ago, Hampshire College seemed destined for a very different fate.
The 54-year-old private liberal arts college in western Massachusetts was on the verge of closing due to financial constraints. It even chose not to admit a full class of students – seemingly doomed to close its doors, as have many other small private nonprofit organizations in recent years.
But since the 2019 financial crisis, the college’s leadership has steered Hampshire on a path toward financial viability. Hampshire has launched a $60 million fundraising campaign, revamped its curriculum and gone all-in on what President Edward Wingenbach has described as one of the “most distinctive and exciting missions” in higher education: to be an experimental college that aims to transform higher educationhe said.
This meant doing away with specializations and departments and instead offering curricula focused on addressing pressing global issues like climate change and racial injustice.
“If we are to succeed as a stand-alone institution and turn around these financial challenges, we will have to fundamentally commit to the mission and reinvigorate Hampshire’s uniqueness,” Wingenbach said.
Hampshire’s trajectory appears to be headed in the right direction, said Michael Horn, a higher education expert, podcast host and author. College enrollment has begun to recover in recent years and is making progress toward closing an annual deficit.
Other private colleges have failed to successfully turn around dire financial situations in recent years. That includes Pine Manor Collegea Massachusetts institution that announced plans to be acquired by neighboring Boston College in 2020, Monte Ida Collegeanother Massachusetts institution that closed suddenly in 2018, and Iowa Wesleyan University, which closed last year.
Today, other university leaders are trying to learn from Hampshire and discussing the possibility of making changes before they hit their own financial crises, said Mary Marcy, a higher education consultant and former president of California Dominican University.
“The fact that places like Hampshire seem to be changing is an encouraging message,” Marcy said.
Changing the curriculum
Hampshire’s success could provide a roadmap for other small colleges facing financial troubles. But its turnaround has not been easy.
The college’s plan centered on an experimental curriculum that focused on solving pressing world problems rather than teaching discrete specializations. To that end, Hampshire eliminated interdisciplinary schools that functioned as departments, Wingenbach said. This meant that faculty members no longer belonged to a single disciplinary area.
As officials carried out their plan, the college was forced to launch a fundraising campaign that Wingenbach likened to a “political campaign” to keep the college’s operations running.
“We told people that what we’re doing is exciting, it’s unique, it’s interesting, it’s engaging and it’s setting an example for higher education and you should support it,” Wingenbach said. That vision helped drive donations and prospective students, he said.
To close the structural gap, the college needed to eliminate efforts that were not “mission-focused,” Wingenbach said.
For example, Hampshire discontinued independent research centers that did not offer classes to undergraduates. Officials also advised its advancement office to focus entirely on raising funds for direct, unrestricted operational support – not planned giving – allowing the college freedom over how it would use the money.
The changes have brought new opportunities for students. Last year, the college created an optional course structure called “Semester without limits”, where students spend an entire period in a single class oriented around a large project. Last fall, students developed a multi-year climate action plan for Hampshire.
Through the program, students have “immense flexibility to travel, to do intensive work, to not be limited by traditional classroom calendar structures,” Wingenbach said.
Individual faculty members previously adopted many of the ideals, practices and expectations that the new curriculum codified, said Omar Dahi, an economics professor at Hampshire and representative of the college’s American Association of University Professors chapter. This includes baking anti-racism instruction or entrepreneurial skills in the educational experience of each student.
Through these changes, Hampshire has sent a message to prospective students: If you care about climate change, if you care about resisting white supremacy, if you want to understand how to “conceptualize truth, in a post-truth era,” you can work at Hampshire College and be part of a community engaged in this kind of work, Wingenbach said.
Getting faculty buy-in
From a faculty perspective, the 2019 crisis was “incredibly disruptive” and “a huge shock” as teachers feared they would soon be out of their jobs, Dahi said.
Many faculty members left the school after the 2019 crisis, including those who wanted to stay, Dahi said. While no faculty members were laid off, they took negotiated leaves of absence and some temporary salary reductions, he said.
Hampshire leaders cut the number of full-time equivalent teachers from 118 during the 2018-19 academic year to just 65 the following year. In the 2022-23 academic year, the total number of teachers will hit rock bottom at 45 — although they will increase slightly to 50 this academic year.
Dahi himself took a two-year unpaid leave of absence to “be part of this effort to save the college” — taking a grant-funded temporary position at the nearby University of Massachusetts Amherst before returning, he said.
Faculty also struggled with the end of the college’s interdisciplinary school structure, including the elimination of the long-established schools of social sciences and natural sciences, Dahi said.
Each school had “its own rules and ways of doing things, and you felt like you had a home there,” he said.
Yet the faculty also felt pride in helping save the college, Dahi said. A sense of goodwill grew between faculty members and Wingenbach, who took over in the summer of 2019 after Miriam Nelson resigned earlier that year.
Mr. Dahi said there had been a greater level of transparency from Hampshire’s administration after the crisis than he had seen from college leaders in the past, when decisions were often made arbitrarily, he added. That helped foster trust, even when decisions were not universally popular, he said.
“People can at least develop confidence that decisions are made based on logical and predictable things,” Dahi said. “That’s a big transformation.”
However, colleges don’t have to be on the brink of closure to get faculty buy-in to make transformative reforms, Marcy said.
What matters is that Hampshire’s review is aligned with its historic mission, Marcy said. They haven’t dropped everything and gone fully online, for example.
How close is Hampshire to financial viability?
Hampshire’s admission rates and finances are moving in the right direction.
Last fall, 724 students enrolled at Hampshire — a 59.5% increase from fall 2021, when just 454 students enrolled, according to data provided by the college. In fall 2018, before the financial crisis, 1,126 students were enrolled.
Meanwhile, the college received 2,411 applications for the 2023-24 academic year, an 82.7% increase from fall 2020. That number is roughly flat from pre-crisis numbers from 2018.
Wingenbach expects about 900 students to attend college next year, and about 1,000 students the year after that.
By 2026, Wingenbach said he believes the college will be able to eliminate its budget deficit. By that point, the college will become fully sustainable based on tuition revenue, a normal annual fund, typical fundraising and regular distribution of gifts, Wingenbach said.
According to the college, this year’s budget deficit — the amount taken from its sustainability fund — is $3 million, far less than the $9 million the college withdrew last academic year.
To cover the budget gap, Hampshire has raised more than $40 million in unrestricted money and pledges since the 2018-19 academic year, supporting the college’s operations as it transitions to a sustainably sized institution, Wingenbach said.
Can other colleges follow the Hampshire model?
Hampshire’s exact playbook is an anomaly, Horn said, and he’s not sure how much room there is in the higher education sector for a dozen schools like it. But the general principles he followed can be applied at any institution — leaning into what sets the school apart, what would attract students and being clear about that, he said.
“This is a manual that anyone can and should follow,” Horn said.
As president of California Dominican University from 2011 to 2021, Marcy supervised similar transformative changes. The university’s plan, which took about five years to implement, simplified the curriculum, made it easier for students to double major or double minor, and ensure that everyone received certain “main experiences,” such as integrative coaching and community engagement, during her time at the institution, she said.
Under his leadership, Dominican University of California saw graduation rates and fundraising increase significantly.
According to Marcy, university leaders should ask themselves: If we were creating this institution today, maintaining the same values and mission, what would it look like?
“And then you have a lot of freedom to reimagine,” Marcy said.
But when investing in such a transformation, they also need to determine what types of resources and time will be needed for it to be successful, she said.
“The fact that places like Hampshire appear to be recovering is an encouraging message.”
Maria Marcy
Higher education consultant
One factor behind Hampshire’s success is that officials have realized they “can’t be all things to all people,” Horn said. “You have to figure out what your strengths are and, frankly, get out of the things that are your weaknesses.”
This can reduce administrative overhead and cut “extravagant” costs that affect financial sustainability, he said. It can also lessen the need to maintain departments that are ancillary to the college’s core mission. And it can provide clarity about who the institution is serving — better serving those students, Horn said.
A few years ago, when typing “Hampshire College” into Google, suggested searches included: “Is Hampshire College still open?” Wingenbach said.
They are now receiving as many applications as before the financial crisis, and the quality of their pool of applications is “as good or better, it is more diverse and comes from a wider range of states or countries,” he said.
“This is due to the enthusiasm around a curricular approach that no one else is doing but that captures why people value a liberal arts education,” he said. “We end up with students who find this approach absolutely compelling.”
News
Modiv Industrial to release Q2 2024 financial results on August 6
RENO, Nev., August 1, 2024–(BUSINESS THREAD)–Modiv Industrial, Inc. (“Modiv” or the “Company”) (NYSE:MDV), the only public REIT focused exclusively on the acquisition of industrial real estate properties, today announced that it will release second quarter 2024 financial results for the quarter ended June 30, 2024 before the market opens on Tuesday, August 6, 2024. Management will host a conference call the same day at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) to discuss the results.
Live conference call: 1-877-407-0789 or 1-201-689-8562 at 7:30 a.m. Pacific Time Tuesday, August 6.
Internet broadcast: To listen to the webcast, live or archived, use this link https://callme.viavid.com/viavid/?callme=true&passcode=13740174&h=true&info=company&r=true&B=6 or visit the investor relations page of the Modiv website at www.modiv.com.
About Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT focused on single-tenant net-leased industrial manufacturing real estate. The company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation’s supply chains. For more information, visit: www.modiv.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731628803/en/
Contacts
Investor Inquiries:
management@modiv.com
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Volta Finance Limited – Director/PDMR Shareholding
Volta Finance Limited
Volta Finance Limited (VTA/VTAS)
Notification of transactions by directors, persons exercising managerial functions
responsibilities and people closely associated with them
NOT FOR DISCLOSURE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN THE UNITED STATES
*****
Guernsey, 1 August 2024
Pursuant to announcements made on 5 April 2019 and 26 June 2020 relating to changes to the payment of directors’ fees, Volta Finance Limited (the “Company” or “Volta”) purchased 3,380 no par value ordinary shares of the Company (“Ordinary Shares”) at an average price of €5.2 per share.
Each director receives 30% of his or her director’s fee for any year in the form of shares, which he or she is required to hold for a period of not less than one year from the respective date of issue.
The shares will be issued to the Directors, who for the purposes of Regulation (EU) No 596/2014 on Market Abuse (“March“) are “people who exercise managerial responsibilities” (a “PDMR“).
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Dagmar Kershaw, Chairman and MDMR for purposes of MAR, has acquired an additional 1,040 Common Shares in the Company. Following the settlement of this transaction, Ms. Kershaw will have an interest in 12,838 Common Shares, representing 0.03% of the Company’s issued shares;
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Stephen Le Page, a Director and a PDMR for MAR purposes, has acquired an additional 728 Ordinary Shares in the Company. Following the settlement of this transaction, Mr. Le Page will have an interest in 50,562 Ordinary Shares, representing 0.14% of the issued shares of the Company;
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Yedau Ogoundele, Director and a PDMR for the purposes of MAR has acquired an additional 728 Ordinary Shares in the Company. Following the settlement of this transaction, Ms. Ogoundele will have an interest in 6,862 Ordinary Shares, representing 0.02% of the issued shares of the Company; and
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Joanne Peacegood, Director and PDMR for MAR purposes has acquired an additional 884 Ordinary Shares in the Company. Following the settlement of this transaction, Ms. Peacegood will have an interest in 3,505 Ordinary Shares, representing 0.01% of the issued shares of the Company;
The notifications below, made in accordance with the requirements of the MAR, provide further details in relation to the above transactions:
a) Dagmar Kershaw |
b) Stephen LePage |
c) Yedau Ogoundele |
e) Joanne Pazgood |
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a. Position/status |
Director |
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b. Initial Notification/Amendment |
Initial notification |
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a name |
Volta Finance Limited |
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b. LAW |
2138004N6QDNAZ2V3W80 |
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a. Description of the financial instrument, type of instrument |
Ordinary actions |
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b. Identification code |
GG00B1GHHH78 |
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c. Nature of the transaction |
Acquisition and Allocation of Common Shares in Relation to Partial Payment of Directors’ Fees for the Quarter Ended July 31, 2024 |
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d. Price(s) |
€5.2 per share |
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e. Volume(s) |
Total: 3380 |
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f. Transaction date |
August 1, 2024 |
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g. Location of transaction |
At the Market – London |
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The) |
B) |
w) |
It is) |
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Aggregate Volume: Price: |
Aggregate Volume: Price: |
Aggregate Volume: Price: |
Aggregate Volume: Price: |
CONTACTS
For the investment manager
AXA Investment Managers Paris
Francois Touati
francois.touati@axa-im.com
+33 (0) 1 44 45 80 22
Olivier Pons
Olivier.pons@axa-im.com
+33 (0) 1 44 45 87 30
Company Secretary and Administrator
BNP Paribas SA, Guernsey branch
guernsey.bp2s.volta.cosec@bnpparibas.com
+44 (0) 1481 750 853
Corporate Broker
Cavendish Securities plc
Andre Worn Out
Daniel Balabanoff
+44 (0) 20 7397 8900
*****
ABOUT VOLTA FINANCE LIMITED
Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the Main Market of the London Stock Exchange for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to the regulation and supervision of the AFM, which is the regulator of the financial markets in the Netherlands.
Volta’s investment objectives are to preserve its capital throughout the credit cycle and to provide a stable income stream to its shareholders through dividends that it expects to distribute quarterly. The company currently seeks to achieve its investment objectives by seeking exposure predominantly to CLOs and similar asset classes. A more diversified investment strategy in structured finance assets may be pursued opportunistically. The company has appointed AXA Investment Managers Paris, an investment management firm with a division specializing in structured credit, to manage the investment portfolio of all of its assets.
*****
ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-specialist asset management firm within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management at the end of December 2023.
*****
This press release is issued by AXA Investment Managers Paris (“AXA IM”) in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (“Volta Finance”), the portfolio of which is managed by AXA IM.
This press release is for information only and does not constitute an invitation or inducement to purchase shares of Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in violation of such limitations or restrictions. This document is not an offer to sell the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such an offering would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration under the Securities Act. Volta Finance does not intend to register any part of the offering of such securities in the United States or to conduct a public offering of such securities in the United States.
*****
This communication is being distributed to, and is directed only at, (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies and other persons to whom it may lawfully be communicated falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are available only to, and any invitation, offer or agreement to subscribe for, purchase or otherwise acquire such securities will be made only to, relevant persons. Any person who is not a relevant person should not act on or rely on this document or any of its contents. Past performance should not be relied upon as a guide to future performance.
*****
This press release contains statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes”, “anticipates”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include statements about the level of the dividend, the current market environment and its impact on the long-term return on Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that such forward-looking statements are not guarantees of future performance. Actual results, portfolio composition and performance of Volta Finance may differ materially from the impression created by the forward-looking statements. AXA IM undertakes no obligation to publicly update or revise forward-looking statements.
Any target information is based on certain assumptions as to future events that may not materialize. Due to the uncertainty surrounding these future events, targets are not intended to be and should not be considered to be profits or earnings or any other type of forecast. There can be no assurance that any of these targets will be achieved. Furthermore, no assurance can be given that the investment objective will be achieved.
Figures provided which relate to past months or years and past performance cannot be considered as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of Volta Finance’s investment methodologies and philosophies as implemented by AXA IM. The historical success or AXA IM’s belief in the future success of any such trade or strategy is not indicative of, and has no bearing on, future results.
The valuation of financial assets may vary significantly from the prices that AXA IM could obtain if it sought to liquidate the positions on Volta Finance’s behalf due to market conditions and the general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be relied upon as such.
Publisher: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, with registered office at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.
*****
News
Apple to report third-quarter earnings as Wall Street eyes China sales
Litter (AAPL) is set to report its fiscal third-quarter earnings after the market closes on Thursday, and unlike the rest of its tech peers, the main story won’t be about the rise of AI.
Instead, analysts and investors will be keeping a close eye on iPhone sales in China and whether Apple has managed to stem the tide of users switching to domestic rivals including Huawei.
For the quarter, analysts expect Apple to report earnings per share (EPS) of $1.35 on revenue of $84.4 billion, according to estimates compiled by Bloomberg. Apple saw EPS of $1.26 on revenue of $81.7 billion in the same period last year.
Apple shares are up about 18.6% year to date despite a rocky start to the year, thanks in part to the impact of the company’s Worldwide Developer Conference (WWDC) in May, where showed off its Apple Intelligence software.
But the big question on investors’ minds is whether iPhone sales have risen or fallen in China. Apple has struggled with slowing phone sales in the region, with the company noting an 8% decline in sales in the second quarter as local rivals including Huawei and Xiaomi gain market share.
Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC). (Photo by Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)
And while some analysts, such as JPMorgan’s Samik Chatterjee, believe sales in Greater China, which includes mainland China, Hong Kong, Singapore and Taiwan, rose in the third quarter, others, including David Vogt of UBS Global Research, say sales likely fell about 6%.
Analysts surveyed by Bloomberg say Apple will report revenue of $15.2 billion in Greater China, down 3.1% from the same quarter last year, when Apple reported revenue of $15.7 billion in China. Overall iPhone sales are expected to reach $38.9 billion, down 1.8% year over year from the $39.6 billion Apple saw in the third quarter of 2023.
But Apple is expected to make up for those declines in other areas, including Services and iPad sales. Services revenue is expected to reach $23.9 billion in the quarter, up from $21.2 billion in the third quarter of 2023, while iPad sales are expected to reach $6.6 billion, up from the $5.7 billion the segment brought in in the same period last year. Those iPad sales projections come after Apple launched its latest iPad models this year, including a new iPad Pro lineup powered by the company’s M4 chip.
Mac revenue is also expected to grow modestly in the quarter, versus a 7.3% decline last year. Sales of wearables, which include the Apple Watch and AirPods, however, are expected to decline 5.9% year over year.
In addition to Apple’s revenue numbers, analysts and investors will be listening closely for any commentary on the company’s software launches. Apple Intelligence beta for developers earlier this week.
The story continues
The software, which is powered by Apple’s generative AI technology, is expected to arrive on iPhones, iPads and Macs later this fall, though according to Bloomberg’s Marc GurmanIt won’t arrive alongside the new iPhone in September. Instead, it’s expected to arrive on Apple devices sometime in October.
Analysts are divided on the potential impact of Apple Intelligence on iPhone sales next year, with some saying the software will kick off a new iPhone sales supercycle and others offering more pessimistic expectations about the technology’s effect on Apple’s profits.
It’s important to note that Apple Intelligence is only compatible with the iPhone 15 Pro and newer phones, ensuring that all users desperate to get their hands on the tech will have to upgrade to a newer, more powerful phone as soon as it is available.
Either way, if Apple wants to make Apple Intelligence a success, it will need to ensure it has the features that will make customers excited to take advantage of the offering.
Subscribe to the Yahoo Finance Tech Newsletter. (Yahoo Finance)
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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Number of Americans filing for unemployment benefits hits highest level in a year
The number of Americans filing for unemployment benefits hit its highest level in a year last week, even as the job market remains surprisingly healthy in an era of high interest rates.
Jobless claims for the week ending July 27 rose 14,000 to 249,000 from 235,000 the previous week, the Labor Department said Thursday. It’s the highest number since the first week of August last year and the 10th straight week that claims have been above 220,000. Before that period, claims had remained below that level in all but three weeks this year.
Weekly jobless claims are widely considered representative of layoffs, and while they have been slightly higher in recent months, they remain at historically healthy levels.
Strong consumer demand and a resilient labor market helped avert a recession that many economists predicted during the Federal Reserve’s prolonged wave of rate hikes that began in March 2022.
As inflation continues to declinethe Fed’s goal of a soft landing — reducing inflation without causing a recession and mass layoffs — appears to be within reach.
On Wednesday, the Fed left your reference rate aloneBut officials have strongly suggested a cut could come in September if the data stays on its recent trajectory. And recent labor market data suggests some weakening.
The unemployment rate rose to 4.1% in June, despite the fact that American employers added 206,000 jobs. U.S. job openings also fell slightly last month. Add that to the rise in layoffs, and the Fed could be poised to cut interest rates next month, as most analysts expect.
The four-week average of claims, which smooths out some of the weekly ups and downs, rose by 2,500 to 238,000.
The total number of Americans receiving unemployment benefits in the week of July 20 jumped by 33,000 to 1.88 million. The four-week average for continuing claims rose to 1,857,000, the highest since December 2021.
Continuing claims have been rising in recent months, suggesting that some Americans receiving unemployment benefits are finding it harder to get jobs.
There have been job cuts across a range of sectors this year, from agricultural manufacturing Deerefor media such as CNNIt is in another place.
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