Number of Americans filing for jobless benefits jumps to highest level in 10 months
The number of Americans filing for jobless benefits jumped to the highest level in 10 months last week, a sign that the labor market is likely cooling under the weight of high interest rates
The number of Americans filing for jobless benefits jumped to the highest level in 10 months last week, a sign that the labor market is likely cooling under the weight of high interest rates.
Unemployment benefit applications for the week ending June 8 rose by 13,000 to 242,000, up from 229,000 the week before, the Labor Department reported Thursday. That's significantly more than the 225,000 new claims analysts were expecting and the most since August of 2023.
The four-week average of claims, which softens some of the week-to-week volatility, rose to 227,000. That's an increase of 4,750 from the previous week and the highest since September, but still less than the average one year ago.
Weekly unemployment claims are seen as a stand-in for the number of U.S. layoffs in a given week and a sign of where the job market is headed. They have remained at historically low levels since millions of jobs vanished when the COVID-19 pandemic hit the U.S. in the spring of 2020.
“While layoffs remain low, an increase in claims may indicate that those losing their jobs are filing for benefits because they are finding it more difficult to get new jobs,” said Nancy Vanden Houten, lead U.S. economist of Oxford Economics. “That would be consistent with a slower pace of hiring and fewer workers leaving their jobs.”
Though this week’s number seems relatively high, it’s still within a range that reflects a healthy labor market. However, sustained layoffs at this level could have some influence on Federal Reserve officials, who keep close watch on the
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